| The limited liability company has surpassed the | | | | business, you automatically separate yourselves from |
| corporation as the most popular business vehicle for | | | | others. You see, it only takes coming up with a name |
| small business. Why? Because it was created to | | | | to call yourself a business. |
| provide all the advantage of other business entities but | | | | But creating a Georgia company LLC is a clear sign of |
| without their disadvantages. | | | | intelligent business planning which in turn creates more |
| The Ga LLC is such a simple entity to understand and | | | | professionalism and trust when it comes to your |
| maintain but at the same time it gives the owners | | | | business identity. This can be a great advantage when |
| many options when it comes to tax structures, how | | | | trying to get customers and build your brand presence |
| the business will be owned and how it will be operated. | | | | in the marketplace. |
| LIMITED LIABILITY | | | | FLEXIBLE BUSINESS STRUCTURE |
| The main reason to form a Ga LLC is to protect | | | | The laws allow a limited liability company to be |
| yourself and other owners from being personally liable | | | | extremely simple when it comes to ownership and |
| for business debts and obligations. Without a limited | | | | operational structures. There are less formalities |
| liability legal entity such as a Georgia company LLC, | | | | imposed upon it. Accordingly, for the single owner |
| you will be placing everything you own entirely at risk | | | | business or one with a few related owners, a Georgia |
| for potential loss. Given the growing litigious | | | | company LLC can be set up and structured fairly |
| environment of our society and the aggressive plaintiff | | | | quickly and cheaply. |
| lawyers out there looking for small businesses to | | | | As a business evolves and grows over time, its |
| attack, every Georgia business should operate with | | | | ownership and operational structure may need to |
| this legal shield. | | | | change to account for the growth and possible |
| Specifically, section 14-11-303 of the Georgia LLC Act | | | | complexity. For example, the business may admit new |
| states that members (who are owners) are not liable | | | | owners or bring on a passive investor. Also, there may |
| for the business obligations, lawsuits and other liabilities | | | | be a need for more official approval processes when |
| of the business merely because they are owners. It | | | | it comes to major business decisions. |
| does except out tax liabilities from operations and | | | | The Ga LLC allows each business and their owners to |
| there are some conditions and exceptions. However, | | | | define for themselves, how the ownership will be |
| this protection is a tremendous advantage that only | | | | structure and how the business will operate and run on |
| gets more significant as your business grows because | | | | a day to day basis. In business, there is no one size fits |
| successful business are targeted more for lawsuits. | | | | all solution to these matters and the Georgia company |
| RAISING MONEY FOR BUSINESS | | | | LLC thus provides ways to customize such |
| When you form a Georgia company LLC, you gain | | | | fundamental matters for your particular business |
| more options for accessing capital to fund your | | | | situation. |
| business. Banks are often unwilling to lend money to a | | | | FEDERAL INCOME TAX CHOICES |
| brand new business in whatever form it is formed. | | | | A main reason the Georgia limited liability company has |
| Another option is to issue ownership interests in a | | | | become the entity of choice for small business is |
| business in exchange for equity capital. | | | | because in 1997, the IRS passed regulations that |
| Issuing ownership interests is close to impossible in a | | | | allows for the business entity to choose the way the |
| sole proprietorship business. However, with a Georgia | | | | business will be taxed. There are no longer any |
| limited liability company, there is a concept of | | | | additional requirements to qualify for a single layer of |
| ownership interests and membership units can be | | | | pass through taxation. |
| issued in exchange for a percentage ownership in the | | | | When you form a Ga LLC, your business will be taxed |
| business. | | | | via a single layer of pass through taxation by default. |
| Having a separate structure as the business entity | | | | This type of taxation avoids the potentially significant |
| greatly facilitates the raising of capital and provides a | | | | double taxation effect of corporate taxation. |
| well known structure to do so which in turn reduces | | | | However, in some circumstances, your accountant |
| the costs to raise money for your business needs. | | | | may advise that a corporation tax structure is more |
| PROFESSIONAL IMAGE AND TRUSTWORTHY | | | | advantageous. In these cases, a Georgia company |
| PERCEPTION | | | | LLC may file an election with the IRS to be taxed as a |
| With the many fly by night business and business | | | | C corporation or an S corporation. The S corporation |
| scams out there today, potential customers are | | | | qualification does require that the entity and its owners |
| suspicious. A new business has quite a challenge to | | | | meet a set of requirements . You get more choices |
| overcome these concerns . | | | | when it comes to how your business income will be |
| By going through the process to form a Ga LLC for | | | | taxed. |
| your business and having an official entity as your | | | | |