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I agree to the terms of the Legal Plan Contract and Terms of Service. I understand that this is a free trial of the Legal Plan and will NOT renew automatically after the trial period ends. There will be no unexpected charges.
With my consent, the Plan Attorney may also share information from my consultation with LegalZoom for the sole purpose of completing my Business Starter Roadmap.
* LegalZoom is not a law firm or a substitute for the advice of an attorney and may only provide self-help services at your specific direction. This consultation is provided through a free, non-renewing trial of a legal plan.
* The consultation and Roadmap are provided by an independent attorney and this portion of the LegalZoom website may be deemed attorney advertising. This portion of the LegalZoom website is not a lawyer referral service. Any information you submit through this site may not be protected by attorney-client privilege and may be provided to attorneys for the purpose of determining your need for legal services. The consultation and Roadmap are provided by Chike Okpara, Attorney at Law, 311 West 5th Street, Suite 100, Austin, Texas 78701.
The consultation and Roadmap, although provided by an independent attorney, are for general informational purposes only and are not legal advice. The attorney may not be licensed in your state. The consultation and Roadmap do not create an attorney-client relationship between you and the attorney and do not replace the specific advice of a licensed business attorney in your state.
Limited Liability Company (LLC)
An LLC is a business entity created under state law that can shield you from personal liability. LLCs are becoming the most popular way to start a business due to their ease and flexibility.
A limited liability company, or LLC, is a business entity created under state law that combines characteristics of both a corporation and a partnership. Like a corporation, the owners of an LLC are generally not personally liable for company debts. Like a sole proprietorship or a partnership, an LLC has operating flexibility and is, by default, a "pass through" entity for tax purposes. This means that the LLC does not pay taxes on its profits, but instead, profits and losses are "passed through" to the owners, who must then pay tax on their share of LLC income.
What are the main differences between an LLC and S-corporation?
Although an S corporation shares many of the same tax characteristics as an LLC, an LLC has more flexibility and fewer restrictions on ownership than does an S corporation. An S corporation must not have more than 100 shareholders, all of whom must be U.S. citizens or legal residents. An S corporation is also subject to more formalities, such as holding annual meetings and keeping corporate minutes. On the other hand, LLCs generally are not required to hold formal meetings, but an LLC owner may be subject to higher self-employment taxes than a comparable S corporation owner. That is because an S corporation owner is required to pay self-employment tax only on salary, but not on dividends from the corporation.
The answer is usually no, unless the LLC's operating agreement requires meetings. The LegalZoom operating agreements make meetings optional. This is one of the key advantages of an LLC - fewer formalities. This means less paperwork and less chance that the members will accidentally violate the law and possibly lose their liability protection.
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*Available in most states. After the 30-day trial period, benefits to the Business Legal Plan (also Business Advantage Pro) continue automatically for $29.99 per month. For states where Business Advantage Pro is not available, benefits to Business Advantage Standard continue automatically for $7.99. You can cancel by calling (877) 818-8787. For full details, see the Legal Plan Contract and Advantage Terms of Service.