Disadvantages of a Limited Liability Company
The Limited Liability Company (LLC) may have plenty of advantages, but is not without a few disadvantages. Probably the biggest issue faced by LLCs is the fact that they are such a new type of entity. The first LLC statute in the United States was passed in the state of Wyoming in 1976. Nevada passed one in 1991, California in 1995, and the last state joined the fold in 1997. Because of this, there is simply a lack of case law to determine how LLCs will be treated in certain instances.
Not all businesses can operate as LLCs. Businesses in the banking, trust and insurance industries are typically prohibited from forming an LLC. Some states have their own restrictions on who can form an LLC. In California, architects, accountants, lawyers, doctors and other licensed healthcare workers are prohibited from forming an LLC.
Talk to us today about whether
an LLC is right for you.
All that we do is submitted and performed with the understanding that we are not engaged in rendering legal, accounting or other such professional service. If legal advice or other expert assistance is required, the services of a professional should be sought.