Limited Liability Company

To create an LLC you must file what?

Articles of organization

What are disadvantages of a LLC?

Money invested can be lost to business debts, Business dissolves if a member leaves, More difficult to set up then a partnership or sole proprietorship

What does "member management" mean?

Owners of the LLC participate equally in the management

What are the advantages to an LLC?

Pass through tax entity, Creditors cannot come after personal belongings due to debts, Can be started with one person

What happens if one member leaves the LLC?

The company dissolves

What does "Pass through tax entity" mean?

profits are passed through owners and reported in their personal tax returns

What does limited liability mean?

protected from personal liability for business debts and claims