Establishing a business involves way more than just setting up shop. You need to have a concrete strategy in place to increase your chances of success. For instance, you have to decide what kind of entity you want your venture to be. An LLC (Limited Liability Company) or a PLC (Public Liability Company) are two common structures that many business owners choose.
If you need help in selecting and establishing a business structure, Schneiders & Associates, LLP has lawyers in Westlake Village who can offer expert guidance. Our attorneys are conversant with all the legal requirements for each entity and have the qualifications and experience necessary for the job.
What is the Difference Between An LLC and PLC?
The difference between these two structures is that while PLC is incorporated, LLC is not. This means that limited liability companies only have a group of members who are also the owners, but a PLC opens up ownership to the public by selling shares to them.
With the difference in ownership comes another distinction in management. For an LLC, all members can take part in the company’s management and control its activities. A PLC, on the other hand, utilizes a board of directors who are in charge.
A single individual, several people, or corporations can come together to form an LLC. A PLC, however, must have more than two shareholders to be registered.
Legal Requirements When Forming An LLC
If you decide to form a limited liability company, these are some of the legal requirements you need to fulfill:
- Legal Capacity
All states have a legal capacity that you have to meet to be allowed to register an LLC. Being a legal adult with stable mental health is a basic requirement. Then, of course, there has to be at least one registered member.
- Prepare An Operation Agreement
If your LLC involves multiple members, you need to prepare an operating agreement. This is a document that specifies the roles and rights of each owner.
- Get Permits and Licenses
To operate lawfully, you need to get all the necessary permits and licenses for your kind of business. A business lawyer can easily help you identify the licenses that are mandatory in your area.
What are the Legal Responsibilities of An LLC?
Many people chose an LLC structure because it protects them from personal liability in case the company defaults on debts. As such, if a creditor were to file a lawsuit, the firm's assets would be used as collateral. While your personal assets may not be targeted directly in a case whereby a creditor sues your firm, you may still suffer loss as a result of the investments you have in the company.
An LLC is also responsible for damages incurred by an employee who's not a member but was working for the company.
Get Expert Legal Assistance
Schneiders & Associates, LLP is home to highly experienced and qualified business lawyers in Westlake Village, who’ll guide and help you choose the best structure for your company. Give us a call today on 805.764.6370 for any questions regarding business structures.lawyers in Westlake village
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