The American Dream is culminated in the idea of being your own boss. Whether you are considering quitting your job to start your dream career, or you just want to spend some extra time on a passion project, here are some reasons you should consider filing for an LLC.
What Is an LLC?
LLC stands for limited liability company. An LLC is a juridical entity which allows an individual to avoid personal liability for their business affairs. By developing your product or business through an LLC, you can ensure that you personally will not be held liable in a lawsuit for claims that arise in business transactions. Our business lawyers routinely represent companies and advise them on certain matters throughout business operations to minimize their liabilities.
Why File an LLC?
Whether you are going into business by yourself or with business partners, an LLC can not only provide protection from personal liability, but also provide a structure for your business that a standard partnership or solo proprietorship may not have.
What Is the Difference Between an LLC and a Corporation?
For one thing, LLCs are innately designed for smaller businesses. Additionally, corporations are owned not by the members, but by shareholders. An LLC provides you as the creator and member with full ownership over your product or business. Furthermore, an LLC is generally cheaper to form. As a new business, you want to minimize costs in any way you can.
How Do I Form an LLC?
Forming an LLC is relatively straightforward in Louisiana. First, you need to name your LLC, then you need to nominate a registered agent. A registered agent is a person who agrees to send and receive legal papers on behalf of your LLC. This can be anyone who resides in the state where you are filing. Next you will need to file your articles of organization. These forms can be found on website for the Secretary of State in Louisiana. It costs $100. Finally, you may want to draft an operating agreement. Our business attorneys routinely draft operating agreements for clients which consider what happens in certain situations, such as a member’s death, a member’s desire to withdraw, etc. An operating agreement can serve as a type of contract between you and your partners. This will provide more clarity on the expectations you each have on one another.