Choosing to file an LLC ( Limited Liability Company ) with the secretary of state of Arkansas provides the advantages of limited liability for the entity's debts and obligations. An LLC combines the beneficial aspects of a partnership (simple formation and less complex management of the business) with the legal protections of a corporation (distinct separation between personal and business assets).
Business owners commonly form corporations to separate their personal assets from business liabilities. A properly formed corporation allows owners, directors, and officers to drive the business forward without worrying about the potential of losing a home, car, or personal savings due to business obligations or debts.
Business owners commonly form corporations to protect their personal assets from business liabilities. A properly formed corporation allows owners, directors, and officers to manage and grow the business without worrying that about potentially losing their home, car, or personal savings due to business obligations.
Corporations that engage in what are commonly accepted as professional activities must form a "Professional Corporation" - pursuant to certain statutory provisions. Professional services, according to most states, usually consist of services like medical, legal, accounting and financial services.