Contact Us Today 979-703-7014

News & Articles

What Does LLC Stand for?

Posted by Chris Peterson | Nov 28, 2014

Many believe LLC means "limited liability corporation." It doesn't. LLC stands for "limited liability company," and the difference matters. LLCs are a top choice for small businesses because they offer flexibility and protection. If you're forming a business, consider working with a College Station business attorney.

The Origins of LLCs

LLCs are a modern creation. They first appeared in the 1970s when Wyoming introduced this business structure. Before then, business owners had limited options, each with drawbacks. Corporations offered liability protection but came with double taxation. Partnerships and sole proprietorships provided no protection for personal assets.

LLCs solved both problems. They shield owners' personal assets from lawsuits while avoiding double taxation. With LLCs, profits pass directly to the owners, who pay taxes individually. This avoids the corporate issue of being taxed on both profits and dividends.

Benefits of LLCs

LLCs offer more than just tax advantages. Here are some key benefits:

1. Flexibility in Ownership

LLCs can have unlimited owners. S corporations, by contrast, limit ownership to 100 shareholders.

2. Ease of Creation

Starting an LLC is straightforward compared to other business structures. The process involves fewer formalities and less paperwork.

3. Professional Image

The "LLC" designation adds professionalism to a company's name. Many associate it with credibility, much like traditional corporations.

Considering an LLC? Here's What to Do

If you're thinking about forming an LLC, you have many options. However, setting up an LLC requires careful planning. A College Station business lawyer can help you structure your company and meet legal requirements.

Call Peterson Law Group at 979-703-7014 today. Our team will guide you through the process and ensure your LLC gets off to the right start.

About the Author

Chris Peterson

Chris Peterson is the owner of Peterson Law Group. He practices primarily in the areas of wills, trusts and estate planning; probate and trust administration; elder law; and business law. Chris is also the owner of WealthBuilder 1031 Exchange Company.

Peterson Law Group
979-703-7031 (fax)
Mon: 08:30am - 05:30pm
Tue: 08:30am - 05:30pm
Wed: 08:30am - 05:30pm
Thu: 08:30am - 05:30pm
Fri: 08:30am - 05:30pm

Menu