Kansas and Missouri Limited Liability Formation

Olathe Kansas Estate Planning Law Firm

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At the Dorsch Law Firm, we can help you set up and maintain a limited liability structure for your small business. A Limited Liability Company is a type of business organization that combines some elements of a corporation with those of a sole proprietorship or partnership. Like a corporation, the personal liability of the company’s members is limited – thus the name.

The Limited Liability Company is a fairly new structure in the United States, intended as a way to help small businesses enjoy many of the same benefits corporations do, while allowing them to retain their small business model of ownership. A traditional corporation requires a number of things that a Limited Liability Company does not need to create. Corporations have shareholders, and must meet a certain number of times per year at meetings to make decisions. A Limited Liability Company does not have shareholders and does not require meetings. Also, a Limited Liability Company does not need to create a set of bylaws.

The Limited Liability Company model is a good alternative to a sole proprietorship. For small businesses which are owned by one person, the tax benefits of being a sole proprietorship outweigh the liability-reducing benefits of incorporation. By becoming a Limited Liability Company, however, these small businesses retain many of the perks of being unincorporated, while reducing their liability. A Limited Liability Company may in fact choose its own tax status, deciding whether to be treated as a sole proprietorship, or an S or C corporation.

The limitations of liability are of course very important, and are the primary reason most small businesses decide to become an LLC. Once a sole proprietorship has been granted Limited Liability Company status, the owner bears much less responsibility for prosecution and debt issues that the business may undergo. Declaring bankruptcy, for example, can be an enormous headache for a sole proprietorship, incurring serious personal consequences for the owner's credit rating. While bankruptcy is of course never cause for celebration, as a Limited Liability Company, the owner need not worry about his or her personal finances becoming caught up in the business' problems.

While an LLC is the obvious choice for many business owners, for others it may not be worth it. While the accounting and paperwork involved in creating a Limited Liability Company and handling its taxes are much easier to deal with than those of a corporation, they are nonetheless more complex than those of a simple sole proprietorship or partnership. This is why it’s important to have a professional help you explore your options and then advise and set up the structure for you.

Helping you to build your business is part of our core values and services. For more information on setting up a Limited Liability Company in Missouri or Kansas, please contact our office today or call (913) 685-9190.