[Letterhead] Client Address City, State Zip Re: Form of Business Entity.
Dear ____________: Businesses formed in ____________ [State] may be formed as Limited Liability Companies (LLC’s), rather than as corporations or partnerships. Structuring a business as an LLC has some of the following benefits--limited liability to all of the owners against the LLC’s creditors, and taxation as partnership rather than a corporation. The combination of these aspects of what was traditionally corporate limited liability and partnership taxation makes LLC’s an appealing choice for many “closely-held” businesses. Who ought to consider using an LLC? o An existing general partnership. o People forming a new closely-held business or Joint