Limited liability Companies (“LLC”) have far and away become the business entity of choice in Missouri and most other states. LLCs are attractive because of the (1) minimal red tape and procedural hurdles you have to overcome to form the entity, (2) its guarantee of limited liability for members, the (3) freedom to contract and structure the business in almost any way you see fit, and (4) because of tax flexibility.
An LLC in Missouri can be formed in literally fifteen (15) minutes. However, if you do not draft and execute an operating agreement, then Missouri Law will treat your entity as governed by the default statutory scheme. Depending on the circumstances, you may or may not find this agreeable. The LL in LLC guarantees that, provided the separate existence of the LLC is maintained, individual members/owners of the LLC will not be liable for the debts, obligations, or other liabilities of the business. Finally, the IRS can tax an LLC as a sole proprietorship, partnership, C corporation, or S corporation. Such a broad selection enables the owners to pick a tax structure suitable for their needs, while also, in the case of S corporations, mitigating payroll taxes.
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