The Limited Liability Company, or LLC, is a legal business structure that seeks to combine advantages from across 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 benefit of limited liability, the same as a corporation. An LLC can also have an endless 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 traditionally 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 Tennessee 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 Tennessee. An LLC is started just by filing the appropriate form with the Secretary of State. However, some charge additional fees for the formation of LLC?s, and in Tennessee there are certain laws that govern the actions of LLC?s. You should consider these laws when deciding whether to organize your business as an LLC. Finding the right business structure for your company might take some effort, but it will ultimately make your business more profitable.
Can I Change the Form of My Business to an LLC?
Businesses in Montgomery County may change their forms in particular circumstances. Whether a business may convert to a LLC or not is determined by Tennessee law.
How Can an Attorney Help?
Attorneys experienced in Tennessee business law can give you valuable input on whether your business would be more profitable as a LLC.