LLC Business Attorney Colorado | LLC Lawyer Boulder
Before organizing a business, regardless of the type of entity the newly formed company may be, it is important to have a solid understanding of the characteristics, benefits and drawbacks of selecting that entity.
Unlike a sole proprietorship, which is simply a formal legal characterization of a person doing business without the protection of an entity, limited liability companies (LLCs) are entities, which are organized under state law and are separate and apart from their owners.
LLCs are relatively new creations, first appearing in Wyoming in 1977, with the prevalence of limited liability company acts reaching near ubiquity by 1996. At this point the LLC has undoubtedly surpassed the corporation as the most commonly selected form of business entity in Colorado and throughout the country, and for good reason. The LLC offers the best of both worlds: it combines the limited liability traditionally found only in corporations with the oft-preferred pass-through taxation of sole proprietorships and partnerships.
Like corporations, a Colorado LLC can operate in perpetuity, assuming the requirements of the organizational documents and state law are met. But unlike corporations, which are governed by relatively rigid laws as to what can and cannot be agreed to among shareholders and officers, LLCs are particularly well suited for businesses that require unique provisions with regard to profit sharing, management arrangements or any other special considerations that the member(s) and manager(s) believe are appropriate under the circumstances. According to the Colorado courts LLCs are “creatures of contract” and as a result of this contractual liberty the parties are expected to be very precise regarding the terms of their agreement. The courts will enforce almost anything the parties agree to in their operating agreement so they should carefully review the terms of any operating agreement before they sign.
If you are starting a business in Colorado or and are have a business already organized as an LLC and are looking for an Small Business Attorney in Boulder with a results oriented, cost-effective approach tailored to your matter’s specific needs, contact Newell Law. We have the experience and knowledge to achieve the best results possible for your case.