Starting a limited liability company has a number of attractive advantages for many entrepreneurs, but there are some requirements and limitations as well. In many states, for instance, the default is for LLCs to have definite lifespans and to dissolve if one of the original partners leaves the company. Most states do allow for the creation of perpetual LLCs, though. If your state allows for it, an LLC perpetual plan would allow the company to exist until it is dissolved by the partners.
Benefits of Perpetual Lifespan LLCs
The biggest benefit to having an LLC with a perpetual lifespan is that you will not need to file to re-incorporate if you decide not to dissolve the company at the end of its lifespan. This can be a substantial savings. There is a lot of variety to LLC cost by state, but having to re-file costs more than just the application fee. It also costs the time and the labor that goes into the application, and that can add up as the company becomes more and more complex. All of the other advantages of an LLC still apply, too, including:
If for some reason a perpetual lifespan LLC does not wind up working for your business, many states also allow you to choose to keep an indefinite lifespan LLC together after it has reached its termination point.
How to Form LLC Companies
If you are looking at setting your business up as an LLC, you’ll want to start by having a look at GovDocFiling’s “What is an LLC?” FAQ. That will help you with basic pre-application questions. After that, it’s just a matter of filling out the form for starting an LLC and waiting for your paperwork to process.