Highlights of a Limited Liability Corporation

• Official documents, typically called a Certificate of Formation or Articles of Organizatioin, must be filed with the appropriate state in order to form a C Corporation
• State filing fees must be paid
• Most states permit LLC’s to also file an operating agreement, allowing for great flexibility, setting forth the relationships between its members and its internal operation
• An LLC can be managed by its members or by managers
• An LLC is considered by the law to be an individual entity
• Legally, an LLC is a separate entity from its members and managers
• An LLC can generally conduct any lawful business
• Most states permit 1 member LLC’s while none limits the number of members
• Corporations, partnerships and trusts can be members of an LLC
• Members and managers normally enjoy the same limited liability as do the shareholders, directors and officers of a corporation and can lose no more than the amount of their contribution to the LLC
• Protection of members’ personal assets is a major advantage of an LLC
• As with corporations, members and managers can be held liable when the LLC has been used to recklessly harmed people or perpetuate a fraud