Most people don’t know that both the Limited Liability Company and the Corporation provide the same protection against liability. Each gives good protection for owners and management from liabilities suffered as a consequence of doing business.
Orem, UT (PRWEB) March 11, 2013
Should I set up an LLC or a corporation? This is an important question for those about to start up a new business. The most favored types of business entities at this time are the corporation and the Limited Liability Company (LLC). While the LLC has more tax flexibility than either a C or S type corporation, Lee Phillips has now made it a lot easier to ascertain which is better to create under what circumstances. He has produced an easy do-it-yourself course entitled LLC Wizard, to help answer the entrepreneur's questions.
In speaking about the many things to consider in starting a business, Mr. Phillips stated, “Many small start-up businesses end up in a situation where they have to pick a business structure without the necessary knowledge to make the right decision.”
The LLC Wizard Course provides an intelligent comparison of both the disadvantages and advantages of the two major business structures, so business owners can make an informed decision that will benefit them down the road.
Mr. Phillips noted this, “Most people don’t know that both the Limited Liability Company and the Corporation provide the same protection against liability. Each gives good protection for owners and management from liabilities suffered as a consequence of doing business. The only problem is that the value of that protection can be undermined if the LLC or the Corporation is not set up and managed correctly.”
When starting a business and filing the Articles of Incorporation for a corporation or the Articles of Organization for an LLC, getting the state paperwork done correctly isn’t usually a problem. The states will send it back for a rewrite if they see any problem. It is the by-laws and operating agreements that should be more detailed than just the standard forms. These should reflect the needs of the company. The nice thing about corporate by-laws and LLC operating agreements is that they can be adapted to the needs of the business.
The courts will uphold almost any written document, providing that it doesn't break the law. But, courts will only uphold by-laws and operating agreements that are “used” by the company owners. A judge is very likely to set aside by-laws or operating agreements that are not followed and leave the owners open to personal liability. LLC Wizard has an entire chapter on maintaining corporate and LLC formalities.
Since LLCs provide maximum tax advantages and an easier management structure, as well as effectively doubling asset protection, they are often the right choice for entrepreneurs who are just starting out. Lee Phillips concludes, “The LLC is probably the winner for most small businesses.”
Mr. Phillips serves as a counselor to the Supreme Court of the United States. He is the author of 11 books, along with his latest book Protecting Your Financial Future. He has written hundreds of articles for professional groups to help people find the right strategies to use the law so they can protect their property, save taxes and make additional money. He has given addresses at thousands of business seminars. He enjoys helping people apply the law, not only to provide asset protection and estate planning, but to use it to structure businesses and save taxes, helping individuals find success.
LegaLees was founded in 1982 by Lee R. Phillips. It is a legal self-help publishing company. It produces products designed to help people understand the law. Based on his own personal experiences, Mr. Phillips realized that people needed to be able to understand how the law works, so they can direct their own legal professionals. He also saw that people who want to do their own legal work need to be shown how, not just handed a fill-in-the blank form. LegaLees has designed many products to help individuals structure their personal and business affairs. All of the products help the clients protect assets and prevent legal disasters that can strike at any time.