The Limited Liability Company, or LLC, is a legal form of business organization that offers the advantages of several other traditional structures. Limited liability is an advantage that the LLC shares with the corporation, but instead of being taxed as its own entity, it is treated more like a sole proprietorship or partnership for tax purposes. An LLC can also have an unlimited amount of shareholders, like a corporation. However, the LLC is dissolved if one of those members dies or files for bankruptcy. Many business forms have historically been aimed at the goal of limited liability, but the LLC is the most modern of these forms, having become popular since the enactment of laws in Iowa that authorized its formation.
Can My Business Be Formed as an LLC?
The right business form is a decision left up to each business that openes in Iowa. An LLC is started simply by filing the appropriate form with the Secretary of State. However, there may be an additional fee required for forming your LLC, determined by Iowa laws that govern the formation and actions of LLC's. Applicable laws are a primary consideration in the decision of whether to organize as an LLC. The right business structure for your company may be difficult to find, but different structures can end up saving your company a lot of money.
Can I Change the Form of My Business to an LLC?
Businesses in Jefferson may sometimes change form. A company is eligible for conversion to an LLC if its situation falls under circumstances that are detailed by Iowa law.
How Can an Attorney Help?
A lawyer versed in Iowa business law will be able to advise you of the benefits and costs for forming and maintaining a LLC.