Do a cursory glance at any list of businesses and you’re sure to find a number of them ending in the abbreviation LLC. The protection offered from personal liability and heavy taxation are attractive to many small business owners. As with any legal process, there are a number of requirements and considerations involved. Check out our FAQs about LLCs to decide if forming one is right for you.
What exactly is an LLC?
An LLC, or a limited liability corporation, is a specific type of business entity. LLCs are made up of members, or the owners, and have their own registered names, tax identification numbers and bank information. Members of LLCs are usually not legally responsible (hence the name) for any debts or liabilities incurred by the LLC itself. An LLC may be a sole proprietorship, partnership or corporation. This means they are taxed as a pass through entity.
What are the requirements to form an LLC in Mississippi?
It’s important to research the requirements for your specific state as they can vary. For LLCs in Mississippi, you must begin with registration. Members send a Certificate of Formation to the Secretary of State with the information requested and filing fees. The name of your business is important as well. It must include the letters “LLC” and be different from any other businesses on file in the state of Mississippi. Names are reserved with the Secretary of State.
A registered agent must then be appointed. Finally, LLCs must comply with tax and regulatory requirement as well as file annual reports.
Are there any benefits to forming an LLC?
One of the main benefits of forming an LLC is the ability to protect your own personal assets from any liabilities your business may incur. You also avoid double taxation as members report profits and losses on their own tax returns. Finally, forming an LLC may enhance the reputation of your company and add credibility.
How can I find out more information about forming an LLC in Mississippi or Tennessee?
For information personalized to your personal and business needs, reach out to us at Bosserman Law. We’ll be happy to help you determine the best solution for your business.