Limited liability companies are the popular new choice for business start-ups. The “LLC” has only been in existence for roughly 26 years and there are some definite pros and cons.

A limited liability company is a creature of state law. Prior to the late 1970s, it had never been a choice for businesses because it didn’t exist. In the late 1970s, the State of Wyoming passed an act creating it. It took another ten years or so before other states caught on. Once they did, the mad rush was on to pass legislation allowing for the creation of LLCs in nearly all states. The world of business entities had been changed forever.