Christopher S. Mulvaney,

Attorney and Counselor-at-Law

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THIS WEBSITE INCLUDES GENERAL INFORMATION & THE OPINIONS OF CHRISTOPHER S. MULVANEY. IT IS INTENDED TO STIMULATE A BASIS FOR QUESTIONS RELATED TO YOUR PARTICULAR FACTUAL CIRCUMSTANCES — BEFORE YOU ACT.  THIS WEBSITE DOES NOT CONSTITUTE LEGAL ADVICE. IF YOU WANT LEGAL ADVICE, PLEASE MAKE A ZOOM APPOINTMENT TO SPEAK WITH ME.

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Gonzaga University School of Law – Spokane, Washington – Class of 2002 – Cum Laude The Latin phrase “Deo patriae, scientiis, artibus” translates to “For God and country through sciences and arts”.  The initials A.M.D.G. on the seal of Gonzaga Law School stand for Ad Majorem Dei Gloriam, which is Latin for “For the Greater Glory of God” the Motto of the Society of Jesus (Jesuits): a Catholic religious order founded by St. Ignatius of Loyola.

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What are the advantages of an LLC?

Forming a Limited Liability Company (LLC) offers several advantages for business owners, particularly small business owners and entrepreneurs

. Check the Washington State Secretary of State website to see if the LLC name you want is available.

Below is the form used to create an LLC. The cost is $180 to form the LLC, and $70 per year with the required annual list of officers.

Here are some key benefits:

1. Limited Liability Protection:

• This is a primary advantage of an LLC.
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• An LLC is legally separate from its owners (members), creating a barrier between personal and business assets.
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• If the business incurs debts or is sued, the personal assets of the owner (like home, car, and savings) are generally protected from creditors or lawsuits.
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• The owner’s risk is limited to their investment in the business. 

2. Flexible Taxation:

• LLCs can choose their tax structure, offering tax advantages.
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• Pass-Through Taxation: By default, LLCs are “pass-through” entities, meaning profits and losses are passed directly to the owners’ personal tax returns and taxed at their individual rates.
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• This avoids the double taxation that C corporations face.
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• Tax Options: LLCs can elect to be taxed as a sole proprietorship, partnership, S corporation, or C corporation, depending on what best suits the business’s needs.
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• For example, choosing S corp status can help owners potentially save on self-employment taxes. 

3. Ease of Formation and Maintenance:

• Forming an LLC is generally simpler and less expensive than forming a corporation.
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• It typically involves less paperwork and fewer formalities compared to corporations.
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• LLCs are not required to hold annual meetings or maintain extensive records, reducing administrative burden. 

4. Flexible Management Structure:

• LLCs offer flexibility in how they are managed.
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• They can be either member-managed (where all owners are involved in decision-making) or manager-managed (where managers are appointed to handle day-to-day operations).
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• This allows owners to choose the structure that best fits their business size and goals. 

5. Credibility:

• Establishing an LLC can add credibility to a business, especially compared to a sole proprietorship or partnership.
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• It signals professionalism and seriousness to clients, suppliers, and potential investors. 

6. Ownership Flexibility:

• LLCs have few restrictions on the number or type of members.
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• This flexibility can be beneficial for businesses with diverse ownership or those seeking to attract investors. 

7. Distribution Flexibility:

• LLCs allow for flexible profit sharing among members, which can be determined by terms outlined in the operating agreement.
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• This differs from other structures that might require profits to be split according to ownership percentages. 

In summary, LLCs are a popular business structure because they offer a blend of liability protection, tax flexibility, and ease of operation, making them an attractive option for a wide range of businesses.

NEVADA SERIES LLC

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Washington State residents can meet with me in Zoom/DocuSign from anywhere in the world, and I can notarize their electronic signatures because I am a remote online notary.  Just email me an image of your photo ID.