LLC – Why and How?

Why an LLC? 1. Limit Personal Liability The name says it all:  Limited Liability Company.  You can protect your personal assets such as your home, vehicles, and other personal property from liabilities related to operating your business.  2. Avoid Double Taxation With an LLC, you may elect to receive the benefit of pass-through taxation, which means that the owners report the profits and losses on their individual income tax returns.  The LLC itself would not be taxed, which protects you from double taxation. 3. Lessen Paperwork An LLC will have fewer formalities than S Corporations and C Corporations in paperwork and record keeping. 4. Fewer Restrictions An LLC is able to implement an organizational structure that fits its business as there are fewer organizational restrictions.     How do I form an LLC?  1. Contact McHenry Haszard Law for assistance in the following steps. Any time you are dealing with legal aspects of business, you should request help from your attorney.  Your attorney will assist you in with the  necessary steps in the correct order.  2. Choose a Business Name Your business name must be available and comply with state law. 3. File Formal Paperwork In Nebraska, you must file Articles of Organization with the Nebraska Secretary of State. 4. Create and Operating Agreement The Operating Agreement sets forth the rules that govern the operation of your LLC. 5. Set Up Your FEIN An FEIN is a Federal Employment Identification Number, which is the tax identification number for your LLC.  You will use this number for transacting business such as opening a bank account.