Limited Liability Company

Denver Lawyers

Colorado Limited Liability Companies are surfacing everyday in our economy due to the ever-increasing development of business owners. The Denver, Colorado Limited Liability Company lawyers at Watson & Associates, LLC have sound experience in business formation of Limited Liability Companies.

The popularity of a limited liability companies among small businesses has increased. Some important factors that you must be aware of include:

· Personal Liability Issues

· Liability of managers or members

· LLC s. Limited Liability Partnerships

· LLC s vs. C Corporations

· Whether the Limited Liability Company is the preferred entity given your goals.

Our Denver LLC attorneys advise local clients on selections of business entities start up options and effectively counsel you on the duties, roles and limited liability concerns in the operation of an LLC. We provide general counsel services to businesses of all size throughout the state of Colorado. When you decide to form a new business, you must be familiar with state requirements and personal liability imposed.

Any limited corporation needs the appropriate documentation to protect limited partners from liability. Operating agreements would be a good way to start.

Know Your Rights under the Law

· Federal Tax ID numbers

· Articles of Incorporation

· Business formation

·Operating Agreements

· Partnership Agreements

· Business Development and Training

·LLC/ Limited Liability Company

·S Corp

·C Corp

·Litigation

Limited Liability outside Counsel Services

There is more to filing incorporation documents with the Colorado Secretary of State. Forming a limited liability company carries with it legal obligations and responsibilities. Business owners must understand their rights and duties to the LLC. As a new business owner, you should also understand how to maintain personal protection. Failure to get advice in these areas can be costly - both personally and to the LLC.

Colorado Business owners form a Limited Liability Company (LLC) to reduce their personal liability. If you operate as a sole proprietor or partnership, you are personally responsible for any business debts or lawsuits against your business. Nearly everything you own can be at risk. Our small business liability attorneys can help you in this regard.

When you set up an LLC, you separate your business and personal identities. This helps protect your personal savings, your house, your car, etc. LLCs can also provide business owners with other benefits like tax savings.

What is a Limited Liability Company?

A limited liability company (LLC):

· ·is a type of business ownership combining several features of corporation and partnership structures

· ·is not a corporation or a partnership

· ·may be called a limited liability corporation, the correct terminology is limited liability company

· · Owners are called members not partners or shareholders

· ·number of members are unlimited and may be individuals, corporations, or other LLC's

· Advantages of Limited Liability Company

· · Limited Liability: Owners of a LLC have the liability protection of a corporation.

· · An LLC exists as a separate entity much like a corporation. Members cannot be held personally liable for debts unless they have signed a personal guarantee.

· · Flexible Profit Distribution: Limited liability companies can select varying forms of distribution of profits. Unlike a common partnership where the split is 50-50, LLC have much more flexibility.

· · No Minutes: Corporations are required to keep formal minutes, have meetings, and record resolutions. The LLC business structure requires no corporate minutes or resolutions and is easier to operate.

· · Flow Through Taxation: All your business losses, profits, and expenses flow through the company to the individual members. You avoid the double taxation of paying corporate tax and individual tax. Generally, this will be a tax advantage, but circumstances can favor a corporate tax structure.

Disadvantages of Limited Liability Company

· · Limited Life: Corporations can live forever, whereas a LLC is dissolved when a member dies or undergoes bankruptcy.

· · Going Public: Business owners with plans to take their company public, or issuing employee shares in the future, may be best served by choosing a corporate business structure.

· · Added Complexity: Running a sole-proprietorship or partnership will have less paperwork and complexity. A LLC may federally be classified as a sole-proprietorship, partnership, or corporation for tax purposes. Classification can be selected or a default may apply.

Setting-up a Limited Liability Company

All 50 state, including Colorado, now allow the formation of LLC`s. Forming your own LLC may not be as simple as a sole-proprietorship; however, the process is much less than a corporation. There are two main actions:

1. Articles of Organization: If you plan to set up a limited liability company, you will have to file articles of organization with the Secretary of State and pay the required fees. Articles may be prepared by a lawyer or filed you.

2. Operating Agreement: Although it is not required in many states to draft an operating agreement, it is advisable. Much like corporate by-laws or partnership agreements, the operating agreement can help define your company profit sharing, ownership, responsibilities, and ownership changes.

DO seek advice from organizations such as Small Business Development Centers (www.sba.gov/sbdc/sbdcnear.html) and the Service Corps of Retired Executives (SCORE) (www.score.org).

DO join your local chamber of commerce, local civic organizations, trade groups, and entrepreneur organizations.

DO get to know your customers and suppliers.

DO network.

How We Can Help You?

Our Denver lawyers are available to answer your concerns when deciding to start your new limited liability company. This includes your start-up operating agreements, Articles of incorporation, S Corp, C Corp, litigation and trial matters.

We Form Your Limited Liability Company the Correct Way

Our Denver Colorado business formation and commercial attorneys can further help you with your Limited Liability Company or LLC formation concerns. Contact us at 720-941-7200. Our clients are usually located in Aurora, Westminster, Colorado Springs, Bennet, Vail, South Denver, East Denver, Englewood, Centennial, Parker, Broomfield, Lakewood, and Cherry Creek, Thornton, Arapahoe, Adams, Jefferson and Denver counties.

Get a free consultation today

Personal Protection

Limited Liability Protection: Personal assets can also be protected in a Colorado limited liability company so long as the owner(s) do not engage in such things as commingling funds, not following statutory mandates. This is commonly known as “piercing the corporate veil.” There is an informative article authored by John C. Murray on piercing the corporate veil. John C. Murray has also written another article addressing the "Restrictions on the use of an LLC as an asset protection vehicle." The IRS article on limited liability companies may also be helpful.

Start Protecting Your Legal Rights Now

Watson & Associates, LLC

1001 South Monaco Parkway, Suite 310

Denver, Colorado 80224

(720) 941-7200