Limited Liability Companies

What Is a Limited Liability Company?

A limited liability company — or LLC — is one of the most popular business structures for small business owners, and for good reason. It separates your personal assets from your business, which means if your business gets sued or takes on debt, your personal savings, home, and other assets are generally protected. This separation is the core concept of limited liability.

An LLC also gives you flexibility in how you manage your business and how you're taxed. Unlike a corporation, there's less paperwork and fewer formalities. You don't need a board of directors or annual shareholder meetings. It's a straightforward structure that works well for a wide range of businesses — from freelancers and consultants to restaurants and real estate investors.

Single-Member vs. Multi-Member LLCs

If you're starting a business on your own, a single-member LLC is probably your best bet. It's simple to set up and gives you the liability protection you need without a lot of complexity. You'll file articles of organization with the Missouri Secretary of State, designate a registered agent, and get an EIN from the IRS.

If you're going into business with a partner or group, a multi-member LLC provides the same protection while allowing you to define each member's ownership percentage, responsibilities, and profit-sharing arrangement in an operating agreement. For multi-member LLCs, you may also want a buy-sell agreement that establishes what happens if a member wants to leave, becomes incapacitated, or passes away.

Either way, having a well-drafted operating agreement is essential. It's the document that governs how your LLC runs, and it can prevent a lot of headaches down the road. Missouri doesn't legally require one, but operating without one is like driving without insurance — technically possible, but a terrible idea.

LLCs and Estate Planning

If you already have a trust or are planning your estate, your LLC ownership should be coordinated with your estate plan. Many business owners transfer their LLC membership interest into their trust using an assignment, which keeps the business out of probate and ensures a smooth transition to your successor trustee if something happens to you.

Why Choose The Taormina Firm?

Vince doesn't just file the paperwork and hand you a certificate. He takes the time to understand your business, helps you choose the right structure, and drafts an operating agreement that protects your interests. He'll also walk you through the formation process — from articles of organization to EIN application to DBA filing if you need one. Whether you're a freelancer looking for liability protection or launching a business with partners, The Taormina Firm makes the process simple and affordable.