Limited Liability Company
One of the most popular new types of entities is the limited liability company (“LLC”). This type of entity provides limited liability for its members. The LLC can be taxed as a pass-through entity or elect to be taxed as a corporation. The LLC provides its members with a great deal of flexibility when creating and managing the entity, making it extremely popular with closely-held businesses. When starting an LLC, it is wise to create a Member Control Agreement governing the members of the LLC. The Member Control Agreement can determine the allocation of profits and losses, the power to govern the LLC, and create a board of governors, chief manager, and treasurer. To form an LLC, work with a Minnesota business lawyer.