A Limited Liability Company, or LLC, is a business designation that influences the extent of your personal liability protection as well as how your business is taxed. For those considering an LLC, the subject may seem overwhelming, and the available information and legal advice can be confusing to the untrained eye.

Below are some clear and accessible answers to some of the more frequently asked questions about LLCs:

1. What Are the Advantages of Starting an LLC?

The primary advantage of an LLC is stated in the name itself: limited liability protection. This means that you are not 100% personally responsible for the debts incurred by your business. Remember, however, that your responsibility is limited, not total, but you have significantly more protection than if you were a sole proprietorship or unincorporated business. Also, an LLC is often taxed as a sole proprietorship or partnership, which could be more beneficial to you come tax time.

2. Are There Any Rules About Naming an LLC?

There are some general guidelines regarding how you name your LLC. In general, as long as the name isn't taken by another business and is not registered in your state of operation, you can use it. You must also use the title "LLC" after your business name once the designation has been approved.

3. What Is a Registered Agent?

To file an LLC, your business must have a registered agent. This is simply another name for the individual who represents your business in all legal-related paperwork and correspondence. There are services available in most states, though some LLC owners may choose to do it themselves. This is usually acceptable as long as they have a physical address in the same state where the LLC is listed.

4. Do I Need a Lawyer to Start an LLC?

A professional will help you better understand all aspects of the process and will move it along effectively and efficiently. Their legal advice can steer you in the right direction, both for your business's present needs and its future ones. While it is not legally mandatory to have an attorney's representation to file for an LLC, their guidance ensures everything is conducted to the letter of the law, and your business's welfare remains a priority.

If you need experienced legal advice, the attorneys at Shelton Law Firm have been serving the Chariton, IA, area since 1967. They’ll help you determine if an LLC is right for your business and its future. Call (641) 774-5956 or visit their website to schedule a consultation today. You can also connect with them on Facebook or Twitter to learn more about their practice.