Why form an LLC? Why use this kit?

Attorneys typically charge between $500 and $1,000 to form a Limited Liability Company. When a business is new, money is tight; couldn't you find a better way to invest that money? LLCs hybrid a corporation and partnership; the owners of an LLC receive the limited liability of incorporating without all the paperwork and government regulations. An LLC must have two or more owners. This Kit includes all the documents you need to form an LLC in your state, along with full instructions. It discusses what an LLC is and the advantages of forming an LLC in your state. (You will need to pay state fees when you submit the documents; fees vary from state to state, averaging $100 to $150.)

So what are the advantages of an LLC?

Limited Liability - The liability of the owners is limited to the extent of their investment in the LLC (with the exception of unpaid taxes.) Creditors cannot attach property of the owners. The LLC can enter into contracts, sue and be sued without involvement of the owners.

Member Contributions - Capital can vary but it can consist of cash, property, services, or the obligation to contribute additional cash.

Tax Options - Properly structured, an LLC is taxed as a partnership rather than a corporation for federal income tax purposes. Since LLC's can be taxed as partnerships it can avoid double taxation.

Governmental Regulation - An LLC is subject to fewer governmental regulations and a lot less paperwork and filing fees than the typical corporations.

Complete Kit: Forms & instructions with optional 3.5 inch software disk