Starting a new business is an exciting endeavor but one that requires careful and thoughtful planning. One of the first considerations should be forming the right business entity for your company. Your choice of business entity can significantly impact your liability, taxes, management, and more. In Kentucky, many small business owners are forming LLCs when starting their business. There are a variety of reasons why an LLC has become an increasingly popular choice .
“LLC” stands for Limited Liability Company. An LLC is a business entity that some people view as a hybrid business structure that combines some of the benefits of both a corporation and a partnership or sole proprietorship. An LLC is similar to a corporation in that it can offer limited liability protection to its owners (or "members") and in many cases can ensure that personal assets may be shielded from the liabilities and debts of the LLC business. However, compared to most corporations, LLCs are flexible in how they are formed requiring less formalities and administrative burdens. Additionally, many people find them advantageous for tax purposes compared to some corporate structures.
An LLC can be a suitable business entity whether you're the sole owner of a company or starting a business with multiple owners. LLCs offer flexibility in the management and operation of the business that can be adapted to the needs of your business, whether you are managing your own company or intend to hire a manager. While LLCs are flexible business entities there are still important laws and rules that apply to forming and maintaining an LLC in Kentucky.
Consult with an experienced attorney to ensure your business startup is structured to best suit your business needs. The attorneys at Simms & Schickel, PLLC are here to help. Contact us today at (502) 400-2992 to schedule a consultation.
The information in this post is for general information purposes only. This is not legal advice and nothing on this page should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.
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