In Missouri, a business can be structured in a number of ways. A business owner may select to form a one of various types of corporations, a limited liability partnership or a limited liability company (“LLC”). There are a number of benefits and advantages to forming an LLC.
A Missouri LLC can be formed fairly quickly in most instances and the fees charged by the Secretary of State are very reasonable. There are a number of important legal issues to determine when forming an LLC, but an experienced lawyer can provide meaningful counsel in these areas. When compared to a corporation, an LLC is significantly easier to form.
Furthermore, ongoing administration and operation of a Missouri LLC is quite reasonable. The annual reports and similar documents required in corporate operation are not required for an LLC. Additionally, changes in membership (i.e. ownership), changes in LLC function and purpose and other corporate changes can be readily made with proper legal guidance.
One of the primary and most important benefits of an LLC is its ability to protect its owners from personal liability. When operated properly, an LLC offers liability protection to its members/owners, meaning that a creditor or claimant against the LLC cannot successfully pursue the owners personally. In the event of debt, a lawsuit of other liability, the business bears the entire burden of liability and its owners are protected from losing their personal assets.
An LLC also provides favorable tax treatment. Historically, the limited liability discussed above could only be obtained through the formation and operation of a corporation, which also incurred two levels of taxation (essentially double taxing profits). An LLC offers what is called “pass-through” taxation, meaning that only the owners owe taxes on profits—no additional tax is paid by the company at all.
At Schleiffarth Law Firm, we work with many small and mid-sized businesses. We provide counsel to clients regarding business matters, LLC formation, LLC operation and numerous related matters.
Keywords: Business Law, LLC, Company Formation, Corporation, Partnership, Pass-Through Taxation, Schleiffarth Law Firm, Jim Schleiffarth, Lawyer, Attorney, St Louis, Webster, Missouri