MO LLC

While there are many advantages of MO LLC companies , the limited liability company (“LLC”) is a relatively new legal entity. The first state to enact an LLC statute was Wyoming back in 1977. Currently, all 50 states have an LLC statute.

Despite the novelty of the LLC, business people, lawyers and accountants now consider the LLC as the presumptive entity of choice for the new business start-up. The LLC laws were specifically designed to provide new business owners with a legal entity that has all the advantages of other legal entity choices but without the disadvantages of those same other entities.

This report summarizes the major advantages of LLC companies in Missouri over other entities:

Limited Liability

All owners of an LLC are protected from being personally liable for the debts, obligations and lawsuits of the LLC. This protection basically states that a member is not liable just because he or she is a member/owner of the MO LLC. There are important guidelines and principles that all LLC companies in Missouri need to know and follow to ensure that this limited liability protect is not lost.*

Entity Status

An LLC is its own separate entity. This means that an LLC is a legal person separate and apart from its owners. This is important from a business continuity perspective. If a member, manager or a key employee dies or leaves the business, the business still continues.
 

Management Structure Options

LLC companies in Missouri and all other states can choose between two simple management structures: (i) member managed or (ii) manager managed. The LLC laws allow members great flexibility in deciding how they want the LLC business to be managed and what rules to impose upon the LLC when it comes to governance and management.

Informal Decision Making Procedures

The LLC laws intentionally impose very little formalities when it comes to LLC decision-making among members and managers.

Flexibility in Ownership Structure

The LLC laws are based on contractual flexibility. This means that the laws allow the Members themselves to decide the ownership structure, right to profits, voting rights and any other expect of the member relationships amongst each other and the LLC.

Flexible Tax Choices

In 1997, the Internal Revenue Service passed a regulation which provided a high benefit for LLCs. The regulation, known as the Check the Box regulations, basically allows for the members of an MO LLC to choose how the LLC will be taxed for federal income tax purposes.

For the single member LLC that is owned by an individual, the LLC can take advantage of having simple sole proprietorship federal income taxation but without the personal liability of sole proprietorships. For the single member LLC that is owned by an entity, the tax choices afford the business freedom from the complex consolidated return regulations.

For the multi-member LLC, the law allows partnership pass through taxation without requiring the LLC to comply with all the complex rules imposed upon a corporation that wants pass through taxation. At the same, time both single member and multi-member LLCs can choose to be taxed as a corporation as well.

Accordingly, there are many advantages to a MO LLC for business. When forming a Missouri LLC, use the fastest and most complete formation service offered by MissouriBusinessFormation.com.