You're starting a business and you realize that you need a partner. You may even have someone in mind. While there are many benefits of forming a partnership, it could end in disaster if you don't take the right steps upfront.
As you learn more about the many types of business structures, you may come to find that starting a company with a partner is the best way to move forward.
If you ever take time to look at the incorporation structure of some of your favorite, local small businesses here in Baton Rouge, you'll notice that many of them are set up as limited liability companies (LLCs). This isn't a coincidence. Many owners here in Louisiana and elsewhere in the United States choose to incorporate as an LLC because they appreciate how it provides them with many of the same protections of a corporation while still allowing them to operate as a small business.
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.
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.
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.
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.
Louisiana residents who are considering which one of the various types of legal business entities to use for their enterprise may want to consider creating a limited liability company, or LLC. An LLC is a business structure that is permitted by state law.