An intro from GHWCC Board Member Debra Gatison Hatter, Partner, Norton Rose Fulbright
The article describes several of the benefits and disadvantages of selecting a limited liability company (LLC) as the entity type for your business. Unfortunately many entrepreneurs select an LLC without understanding these issues. Another fundamental issue that is often misunderstood is that to get the benefits of limited liability you not only have to form the entity for your business but you also must observe corporate formalities and treat the entity as a separate person. The entity is not an extension of the sole proprietor or principals. So maintaining separate financials and corporate meeting minutes and records, etc. is of critical importance.
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Are you a small business owner that has been asked if their company is an LLC, and you don’t know what that means? Or maybe you are an entrepreneur in the initial phases of opening a new business, and your head is swimming with all the options ranging from a sole proprietorship to an LLC to a corporation.
Keep reading for everything you need to know about an LLC and whether it is the right option.