The Limited Liability Company, or LLC, is a legal business structure that seeks to combine benefits 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 advantage of limited liability, the same as a corporation. 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 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 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 Tennessee laws that govern the formation and actions of 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 Oak Ridge can be done if a company's situation meets specific conditions. Conversion to a LLC is possible if Tennessee law permits it in your situation.
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.