The Disadvantages Of LLC?

Are there any disadvantages? There is generally more paperwork and filing requirements to create an LLC than a general partnership. In many states, general partnerships do not have to be filed with the state filing agency. More often, general partnership documents are filed at the Recorder’s Office in the County of residence or place of business. Unlike a corporation whose existence is perpetual, many states require an LLC to designate a dissolution date in the formation document.

In some states, when a member dies, resigns, is expelled or files for bankruptcy, the LLC is dissolved or less otherwise stated in their Articles of Organization or Operating agreement. It is often possible for the majority of members to have a vote to continue the LLC as long as the vote takes place within a short time frame; generally 90 days. Most often, the state agency will allow you to amend the dissolution date at a future time if you are so inclined. Although LLC’s are a fast growing business entity, there is still a lack of wide spread acceptance of an LLC. Depending upon the state, there can be restrictions on rendering professional services. In California, an LLC is forbidden to provide any service that requires a professional state license. Do you have any questions about filing a LLC? Call Sun Documents Karis 888 595-2747