If your Indiana or Kentucky business has grown to the point where you are concerned about liability, the next step may be to file and create a limited liability company, also known as an LLC. Much like a corporation, an LLC can protect the owner from personal liability in the event of lawsuits and payment of the business debts. Putting together an LLC is not as easy as setting up a partnership or a sole proprietorship, but in comparison it’s also much easier to manage than a corporation itself. It can have the same tax attributes and benefits as a corporation, including employee benefits.
In order to file an LLC, you’ll need to file Articles of Organization with the state government so that the Secretary of State can issue you approved Articles and a certificate of Organization, but this statement oversimplifies the process. You may want to file an Election to be taxed as a corporation and you may want to elect to be taxed as a Sub-Chapter S Corporation for added tax savings.
You will need to make initial Minutes of the Members, which might be only you as a sole member, or possibly several members. You should seriously consider signing an Operating Agreement that sets out the authority and business powers and authority of the LLC and the members, and you may need to file for a Federal Employer Identification (FEIN) Number. All of this can be easily and quickly prepared for you by a business attorney such as McCullum Law Office LLC.
In order to get the most out an LLC, you want to ensure not only that it has been set up correctly but that you understand the separate accounting and bookkeeping requirements and all the mechanics of how it works. This is why many people choose to get a lawyer to help them set up an LLC. Another added benefit of this is that you have a point person to contact when there are questions surrounding the LLC or other business planning concerns.
It’s best to establish an ongoing relationship with a business attorney licensed to practice in Indiana and Kentucky rather than waiting until you are in crisis mode to reach out for help. Business planning attorneys can be helpful for ongoing guidance that can put you at ease and allow you to focus on what you do best-running your business.