The Rise of LLCs Pros and Cons of the Popular Business Structure Limited Liability Companies (LLCs) are increasingly popular with business owners in Tennessee. This type of business entity provides many of the same benefits afforded to corporations while retaining some of the rights given to sole proprietors and partnerships. It’s an attractive option but one that might not be right for everyone. The primary benefit of an LLC is in its name: An LLC creates limited liability. The business owners or LLC members are not personally liable for any debts the company incurs, with few exceptions (e.g., members who commit fraud). Many entrepreneurs love the security of knowing their risk is limited if their business fails. They can safely invest in a company without risking their family’s future. While limited liability is the most attractive feature of an LLC, there are other benefits. Adding LLC to a company’s name gives it an air of professionalism that can create legitimacy in customers’ minds. LLCs also have flexible management agreements so business owners can choose the best structure for their circumstances. Further, forming an LLC is usually less expensive and time-consuming than turning a business into a corporation. Forming an LLC is advantageous for many businesses, but it’s not the best path forward for all. Most LLCs are pass-through entities, meaning profits and losses are taxed through the owners, not the business. Whether this is advantageous depends on the business owners’ specific tax situation. While some will see savings, an LLC may result in fewer tax benefits and a higher tax rate for others.
Homemade Dole Whip
Inspired by ThePioneerWoman.com
The summer heat is on! And what better way to cool off after a long day in the sun than a refreshing bowl of Dole whip? This frozen treat has everything you need in a summer dessert: the tangy sweetness of pineapple and the creamy taste of vanilla ice cream.
INGREDIENTS • 3/4 cup pineapple juice
• 2 cups frozen pineapple
• 1 tbsp lime juice
• 1 cup vanilla ice cream
• Pinch of sea salt
DIRECTIONS 1. In a high-powered blender, combine all the ingredients. Blend on medium-high speed until smooth, stopping to push the pineapple chunks down into the blender as needed.
2. Transfer to a bowl; cover and freeze for 30 minutes.
3. Scoop and serve. Alternatively, transfer to a piping bag fitted with a large star tip, then pipe into small serving bowls. (This method will make it look like it came out of a soft serve machine.)
INSPIRATION
The management flexibility provided by LLCs can also be a disadvantage in some circumstances. While owners have more options, there are also more opportunities for confusion around proper roles in the business. Therefore, some entrepreneurs would be better off forming a corporation or partnership. If forming an LLC is right for your business, it pays to have professional help with the process. An improperly formed LLC can lead to many unanticipated headaches and heartaches. Douglass & Runger’s business attorneys have years of experience creating LLCs that comply with statutory requirements and protect entrepreneurs’ interests. Call us to schedule a consultation at 901-388-5805.
“Other things may change us, but we start and end with the family.” —Anthony Brandt
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