LLC FAQ
What is the difference between a “member” and a “manager”?
Member is the term used for anyone who is an owner of the LLC. A manager is exactly what it sounds like – someone who manages the LLCs operations. A member can be a manager, but a manager doesn’t have to be a member. The members can choose someone outside of the LLC to manage it.
Are there limitations on the number of members?
There are no limitations on how many people can be members, or own, an LLC. A single person can own an LLC.
What kind of businesses are LLCs the best option for?
Any business that wants to limit the personal liability of their owners, generally, anyone who is concerned about the protection of their personal assets in the face of lawsuits and debts. It is also best for start-up companies where all the members are actively involved in the running of the company.
Is an attorney required to form an LLC?
Absolutely not. The formation of LLCs has become quite streamlined and the forms are generally simple fill in the blanks. No legal expertise needed. The only time when you may want to consult with an attorney is in deciding whether or not an LLC is the appropriate business form for what you are planning to do.
Should I form my LLC in a particular state?
While forming your LLC in your home state may seem like the obvious choice, there are some other reasons that you should consider forming it in another state, especially if you are providing a business or service in other states than where you live. Some states are notorious for being more business-friendly, like Delaware and Nevada. Wyoming is also becoming a state popular for LLs as it does not have business or franchise taxes.
