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Selecting Nursing Agency Business Structure, Limited Liability Company (LLC)

Start A Nursing Agency Business with NursePartners

Nursing Business Structure, Limited Liability Company (LLC)

As an entrepreneur, it is your requirement to arrive at essential decisions in the wisest possible manner. One of the things you need to close is the type of business structure you will adapt for your nursing business. Aside from the very common sole proprietorship, partnership and corporation, this article will give you the basics of another business entity—Limited Liability Company (LLC).

A limited liability company (LLC) is a business structure that synthesizes the elements of a corporation and a partnership. Sometimes they termed it as Limited Liability Corporation though this is not the proper term since it is neither a corporation nor a partnership type of business ownership. The owners are called members whose liability is limited only to their total investment on the nursing business. The number of members in an LLC can be at a minimum of one owner up to an unlimited number of members.
Pros of LLC
Limited Liability

The liability of a single member is based only on the amount he or she invested on the company. No members are obliged to pay the company’s debts that unless a personal guarantee is signed.
Flexible Profit Distribution
The profits gained in an LLC can be distributed to its members in any ratio they agreed upon. This gives a limited liability company a great flexibility in matters of profit sharing
No Required Shareholder’s meeting
The operation of an LLC is trouble-free for it is spared from having meetings, resolutions, and formal minutes. This is in contrast with a corporation that requires such meetings.
No Business Tax
Profits are subjected to tax. However, it is not taxed as a business tax but an income tax of every member since each member gains different ratios on the profits.
Cons of an LLC
Easy to dissolve

If corporations still exist with the death of a stockholder, in a limited liability company, if any of the members dies or get bankrupt, the LLC is dissolved.
Opening the business to investors
An LLC will no longer be appropriate in case the members grant shares to employees or when it opens to public investors. If such case is done, a corporate ownership must be adapted.
Further Complications
An LLC business ownership requires more documents to accomplish. For tax concerns, the federal government still needs to classify it as a sole proprietorship, partnership and corporation.
Since states vary from regulations on LLC, you should always check with your state if an LLC is permitted. This writing serves only as a guide for you to make an informed decision about the subjects of LLC. Since the laws in the LLC are diversified with the different states, check with the nearest state office on your area to ask for more information in order to decide the best business entity on your nursing business.


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