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Business Formation Archives

Benefits of an LLC

Those considering a business formation in Louisiana might be wondering about the benefits of a limited liability company (LLC). An LLC is a business structure that must follow certain state statutes. Though these statutes vary by state, those who own an LLC are known as members. An LLC gives a business owner the limited liabilities of a corporation with the flexibility of being owning a sole proprietorship.

Limited liability companies

Louisiana residents who are thinking about launching a new venture have several options when it comes to choosing the form of legal entity that the business will operate under. They include sole proprietorships, partnerships, and corporations, but limited liability companies have become increasingly popular in the last several years.

Business owners choose from four business forms

For people in Louisiana who are starting a business, there are four main types of business formation to choose from. Each of the different forms has its advantages and disadvantages; some of them are free or inexpensive to establish while others provide benefits with regard to taxation or the liability of the owner. It is possible in most situations to begin with a business in one form and transition later into another form. The four main types of business are sole proprietorships, partnerships, limited liability companies and corporations.

What to do in case of an audit or regulatory proceeding

Louisiana business owners might wonder whether they are vulnerable to audits or regulatory procedures. Any business could be subject to these, but there are steps a company can take to reduce the likelihood of such a thing happening. Companies can also protect themselves if they do face audits or regulatory procedures.

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