The legal business form of the LLC, or Limited Liability Company, offers the benefits of several other traditional business forms. Like a sole proprietorship or partnership, an LLC is not taxed as its own entity. However, it still has the advantage of limited liability, the same as a corporation. Also like corporations, LLC's can have as many shareholders, or members, as it likes. Unlike a corporation however, the death or bankruptcy of one of the members will dissolve the LLC. Business forms with limited liability have existed for hundreds of years, but the modern LLC became more popular in Louisiana since the legislature enacted laws authorizing its formation.
Can My Business Be Formed as an LLC?
Businesses in Louisiana can organize using whatever form they choose. The office of the Secretary of State is the organization that accepts filings by those who want to open LLC's. Fees are often charged for opening LLC's, however, and Louisiana law determines the costs for creating LLC's. These laws should certainly help you decide whether to organize as an LLC. The business structure that is appropriate for your business may take some effort to find, but finding the right business form can reward you with increased profitability.
Can I Change the Form of My Business to an LLC?
Changing business forms in Kaplan can be done if a company's situation meets specific conditions. Conversion to a LLC is possible if Louisiana law permits it in your situation.
How Can an Attorney Help?
Attorneys experienced in Louisiana business law can give you valuable input on whether your business would be more profitable as a LLC.