Much of the decision you face in selecting an entity revolves around the investment you need for your entity and what your plans are moving forward. If you are okay with limiting the number of shareholders and paying everyone the same way, the S Corporation may make sense for you. However, if you know you will be raising money or need multiple classes of equity, the S Corp does not make sense for you.

This, again, is one of the places where the LLC has such an advantage. It is flexible. It can be adjusted to meet your needs at the time. I often tell clients that the LLC is a strong vehicle if you are unsure of what you need at the time. That is because you do not have to make any major changes at the time. The decision to alter the structure can be simply a numbers game without the hassle of creating a new company.

Discussion Topics

This week’s episode is all about the Limited Liability Company. There are some tips and insights into why you want to set your LLC up a particular way.  If you listen closely, I even offer a trick on how to create some trademark protection without registering it. In this episode, we talk about:

• Formation of an LLC
• LLC Operating Agreement
• Flexibility of the LLC
• Funding with an LLC
• Adjustments and Conversion of the LLC

This deep dive into the LLC is all about understanding the many options available with the LLC, so you can make choices to set your LLC up in the most simple way.

Read More

We have discussed this topic in more detail in other places. If you want to know more about the limited liability company or any other legal entity, check out these articles:

• Word of the Day: Limited Liability Company
• Entity Options
• An Entity By Any Other Name
• Management of Entities
• Your Operating Agreement Can Spread Your Vision
• Word of the Day: Operating Agreement