Full Video Transcript
Limited liability companies are a popular business structure today. They're similar to a corporation in that the owners have limited personal liability for the debts and actions of the business. However, they are generally more flexible than a corporation in that they offer the management flexibility similar to a partnership and the benefit of pass-through taxation. They are also pretty simple to form and require fewer formalities than corporations and many partnerships, typically, only the filing of articles of organization with the appropriate secretary of state, and the drafting of an operating agreement to govern the members of the business. Of course, any business, including an LLC, is still required to obtain all the regular business licenses and permits in order to operate in their city or county. Consult an attorney whenever you start a new business so you can be sure the businesses is properly formed and the right protections have been put into place. Otherwise, the owners may be subject to personal liability.