Frequently Asked Questions
Q: What is an LLC?
A: A limited liability company is an entity created under the laws of the State in which it operates to
conduct business and hold business assets. An LLC consists of members, who in most cases
manage the day to day activities of the business.
Q: Why should I form an LLC?
A: Any business can be liable and subject to the claims of its customers, clients or other third parties.
If the business is a sole proprietorship or partnership the owner’s personal assets (house,
vehicles, bank accounts, etc.) are at risk. If the business is an LLC, then in general only the
assets of the LLC are at risk.
Q: What is the difference between an LLC and a corporation?
A: An LLC consists of members, who each hold a percentage interest in the LLC. The LLC is
controlled by an operating agreement, which outlines the purpose of the business, the rights and
responsibilities of the members, dissolution procedures, distribution rights, etc. No annual
meetings are required. A single member LLC usually does not have to file a separate tax return,
and multi-member LLCs are usually taxed as a partnership.
A corporation is a more formal business entity. A corporation is owned by shareholders, who own shares in the corporation. The corporation is controlled by directors who elect and govern the officers of the corporation. Bylaws are adopted to outline how the corporation shall be managed. Annual meetings are required. Corporations usually must file separate tax returns.
Q: What are the tax benefits or consequences of forming an LLC?
A: Unfortunately, we cannot provide tax advice. You should consult with your accountant to
determine whether an LLC or corporation would provide tax advantages to your business.
Q: What if I want to form an LLC with more than 2 members?
A: LLCs may have multiple members. We can certainly assist you with forming an LLC with 3 or
more members. However, as multi-member LLCs usually require additional considerations and
more complex operating agreements, next business day service is not possible. Fees would be
determined on an individual basis.
Q: What if my accountant suggest that I form a corporation instead of an LLC, can you
assist with incorporation?
A: Yes, we are certainly able to assist with the formation of a corporation. Next day service would
not be possible. Fees would be determined on an individual basis.
Q: What if my business is located outside of Oregon, can I still use this service?
A: Unfortunately, no. LLC Express can only offer services relating to Oregon entities, doing business
in Oregon.
Q: Once I have my LLC, what type of maintenance is required?
A: You will need to establish separate checking and bank accounts for the LLC. You will need to
conduct your business under the name of the LLC and make sure your contracts, leases, etc. are
all in the name of the LLC. If you do not do this, creditors could “pierce the veil” and go after your
personal assets.
LLC EXPRESS
250 NW Franklin Avenue
Suite 402
Bend, Oregon 97701
PO Box 8
Bend, Oregon 97709
Phone: 541-389-1010
Fax: 541-382-6875
Email:
mail@bendattorneys.com