Lay Company Form For Free

An LLC has pros such as flow-through taxation and limited liability protection. However, there are also disadvantages such as the legal process of ?piercing the corporate veil? and being forced to dissolve the LLC if a member leaves.

Delaware, Nevada, Wyoming, Alaska, and South Dakota are the best states in the US to set up an LLC. All of these states have business-friendly laws for LLCs, low fees, low taxes, and don't have strict requirements on who can form an LLC in the state.

Look to go with a name that people are going to remember either because it's catchy, it reflects what you do or it's very unique. A good rule of thumb with this tip is to include a common word in your name as well as what you do (e.g., Dandelion Consulting, Rose Petal Cafe).

An overview of the four basic legal forms of organization: Sole Proprietorship; Partnerships; Corporations and Limited Liability Company follows.

Choosing a legal structure (or business form) is one of the first things you will do when you start your business. The main types of business forms include sole proprietorships, partnerships, corporations, and limited liability companies (LLCs), each with their own advantages and drawbacks.

Disadvantages of an LLC Liability limited by business assets. The ability of the business to remain in existence if a shareholder departments. The creation of a centralized management structure. Flexible asset transfer.

Disadvantages of creating an LLC Many states also impose ongoing fees, such as annual report and/or franchise tax fees. Check with your Secretary of State's office. Transferable ownership. Ownership in an LLC is often harder to transfer than with a corporation.