What is a Limited Liability Company (LLC)?
What are the advantages of an LLC?
Under an LLC structure, personal assets (e.g., a home, personal vehicle, etc.) are not subject to the debts and liabilities of the company. This liability shield is not fool proof, however. As with corporations, under limited circumstances a person can “pierce the corporate veil” and can reach an individual’s personal assets.
What are the disadvantages of an LLC?
LLC profits are subject to self-employment taxes, including Medicare and Social Security. LLCs must retain more than one member, or be subject to federal taxes as a sole proprietorship or corporation. LLC filing papers and regulatory requirements differ from state to state.
Washington State LLCs
LLCs in Washington State must file an annual report with the Secretary of State, and if they have more than one member, obtain an IRS Employee Identification Number. Washington State LLCs must also appoint a registered agent with a physical address in the state of Washington, to receive service of process. Out of state LLCs doing business in the State of Washington must also appoint a Washington-based registered agent, and register with the Secretary of State.
Although Washington State does not require LLCs to have operating agreements, a solid operating agreement can address a variety of issues that may arise during the course of business. An experienced Washington State business attorney can help draw up an operating agreement that will grow with your new company.
Why Hire a Law Firm to Form an LLC?
LLCs have specific requirements which must be met in order to obtain tax advantages. Setting up your business properly in the startup phase can save you significant money in the long run. An experienced business law firm can help you understand if the LLC is the best choice of business entity for you, as well as help you navigate complicated regulatory requirements and keep up with mandatory filings.
Seattle and Tacoma Business Law Services
Choose an experienced corporate law firm for your business. The lawyers of Dickson Law Group have provided legal services to small and large companies in the Seattle and Tacoma area, for decades. Our knowledge of the local courts and judiciary will potentially save your business valuable time and money.
Call now for a FREE telephone consultation, to decide if our firm is right for you. We charge reasonable rates and provide personalized service to a variety of businesses throughout Puget Sound. If your business is based in the Seattle or Tacoma area, call the experienced corporate attorneys of Dickson Law Group today, to get your LLC off the ground.