A limited liability company (LLC) is a special kind of company, like a corporation. Like a corporation, LLC's must be registered with the state. An LLC has unique legal and tax benefits. It can be preferable for a company that has multiple partners, especially for service companies. For example, many law firms are set up as LLC's.
One common legal benefit of an LLC is that it shields the partners from legal liability. For example, in a dental practice formed as an LLC, if one dentist is sued for medical malpractice and the dentist is found liable, his liability won't spread to the other partners. This gives professionals a good way to go into business and pool their resources, without worrying that one of the partners will drag down the others.
(Note: this is just a general description. Don't rely on this as actual legal advice. If you need legal advice, see a lawyer. Don't rely on us. Please see our Disclaimer for more information.)
What does an LLC look like?
An LLC is usually a partnership. It is owned by several partners, also known as members. It is a legal entity registered with the state.
How is an LLC different from a corporation?
They have different structures. A corporation is built like a traditional company, with officers and a board of directors. Legally, the corporation exists like a "fictional person" who can be sued. The individual directors and officers are usually immune (this is called the "corporate veil").
An LLC, on the other hand, is built like a partnership. It consists of a group of partners all engaged in similar businesses. Not all partners have to be the same; some LLC's will have senior partners, junior partners, and non-participating partners (partners who invested money in the partnership but don't play an active role). In addition, many LLC's have employees who function as normal employees and aren't partners at all. When someone wants to sue, they usually sue an individual partner, not the entire firm. That individual partner may be held liable, but the rest of firm will be immune. (Don't rely on this for legal advice. Read our Disclaimer and see a lawyer.)
What is the difference between members and managers?
Managers can also be known as partners. These are people who own a piece of the LLC. Managers are regular employees, except they have authority over the other regular employees. Some LLC's are "member managed," which means the members act as managers (rather than hire someone else to do the job).
Why do I want an LLC?
If you are involved in a professional partnership, you might get significant legal and tax benefits from forming an LLC. See Advantages of LLC for more information.
How do I form an LLC?
PCF can help you form an LLC. We'll make the process fast and easy for you.
Our Standard Package starts at $125 + state fees and includes:
Company Name Search/ Reservation
Preparation & Expedited Filing of your Articles of Organization
Free USPS Priority Shipping
Certified Copies of your Articles of Organization
What do I need?
Just the name and address of your company, the names and addresses of the partners/members, and 10 minutes of your time to fill out our online order form.
Do I need an attorney?
PCF does not provide legal advice (see our Disclaimer). But we will say this: The state will not require you to use an attorney in order to form an LLC. We have helped thousands of people form LLC's without using an attorney. If you need legal advice, see an attorney.
What is an LLC kit?
Most states require you to have an LLC kit and seal. The kit is a binder that contains your articles of formation, organizational minutes, operating agreements, member certificates, and your customized LLC seal.
The LLC seal is a metal stamp that you use to certify official company documents.
PCF can custom order a beautiful LLC kit and seal for you as part of the LLC formation process. If you've already formed your LLC and just need the kit & seal, you can order one separately.
How long will it take?
Processing time vary from state to state. We process all LLCs filings on an expedited basis so that you benefit from the fastest service possible. We can have your Florida or Texas LLC active in 1 to 2 business days.
