A limited liability company (“LLC”) is a comparatively new business entity that offers organizers who comply with all necessary organization and filing requirements an array of attractive, flexible options by which to manage their business. Initially, LLCs began appearing around the country in the late 1970s. Arkansas passed its own law authorizing LLCs, the “Small Business Entity Tax Pass Through Act,” in 1993. Typically, the owners of a LLC, referred to as members, enjoy limited personal liability comparable to shareholders of a corporation. Or, stated differently, if formed properly, the members of a LLC are generally not personally liable for the obligations of the LLC.
Members are also not liable for the acts of other members or agents or employees of the LLC. One of the most attractive features of the LLC is called pass-through taxation. These IRS “check-the-box” regulations mean that unlike other small corporations, in which profits are taxed once at the corporation level and then again at the shareholder level, LLCs are typically only taxed once – at the individual level.
Management within an LLC is also very flexible. LLCs can either be managed by members, in which all members have a right to participate in the management and direction of the company. Or, if the members choose, they may elect designated persons, called managers, to have routine management authority of the corporation.
In order to create an LLC in Arkansas, “articles of organization” must first be filed with the Arkansas Secretary of State’s office. This document indicates to creditors, suppliers, and contractors that your organization is an LLC, and has the benefits and privileges that come with this form of a business organization.
As a whole, the LLC is a very flexible form of doing business, in which your individual needs and concerns can be addressed in the way your LLC is set up. The attorneys at Miller, Butler, Schneider, Pawlik, & Rozzell, PLLC, are very experienced in helping small business owners organize, establish, and run their LLCs. We also can answer any questions you may have about the requirements for starting one and assist you with every step of that process. An LLC is a highly adaptive, very attractive way to conduct business in Arkansas. Miller, Butler, Schneider, Pawlik, & Rozzell, PLLC, can assist you with any questions about LLCs you may have, and would be more than happy to help you tailor your business organization to your needs.