The first decision you have to make when you establish a business, whether in North Dakota or in any other state, is to choose a business structure. When you read the definitions of the business structures, it seems simple, but each business structure has its own fairly complex set of rules regarding taxes and the legal relationships among the owners of the business. Before you choose a business structure, it is wise to consult a business attorney like Stephen Welle.
One of the most popular choices of business structure is Limited Liability Company (LLC), but its definition is one of the most confusing out of all the business structures. Its identifying feature is that its owners cannot be forced to use their personal wealth to pay its debts or judgments, but beyond that, one LLC can differ substantially from another. There are many ways to structure an LLC, and this flexibility makes it an attractive choice for many business owners, but deciding how to structure your LLC requires an expert in small business law.
Quick Facts About LLCs in North Dakota
- Some LLCS are taxed as corporations, some as partnerships, and some as part of the business owner’s tax return.
- The entities that own the LLC are called members. In most cases, all of the members of the LLC are individual people, but it is also legal for a business to be a member of an LLC.
- Every LLC in North Dakota must have a registered agent, which is a person or business that will accept legal papers if the LLC is involved in a lawsuit. The registered agent must have a physical address in North Dakota, and if the registered agent is a person, he or she must be a resident of North Dakota.
Advantages of Forming an LLC
Here are some reasons why you might want to choose an LLC as your business structure for a North Dakota business:
- Compared to other types of business structures, LLCs do not require a lot of paperwork in order to stay in good legal standing.
- Limited liability is perhaps the most important advantage. If your LLC closes, you as an individual cannot be required to use your own money to pay its debts. Likewise, a court cannot order you to use your personal money to pay a judgment against the LLC.
- You have a lot of flexibility in terms of how to structure your LLC, as well as in terms of how it is taxed. It is best to consult a attorney to help you decide about these details.
Contact O’Keeffe O’Brien Lyson Attorneys About Legal Services for LLCs
No matter what type of business structure you choose, you can save yourself a lot of trouble by discussing the process with Steve Welle, and experienced business attorney. Contact O’Keeffe O’Brien Lyson Attorneys in Fargo, North Dakota or call 701-235-8000 or 877-235-8002 for help establishing your LLC.