Easy Questions  
Free Legal Documents

Benefits of a Limited Liability Company (LLC) in Aberdeen, KY

Benefits of a Limited Liability Company (LLC) in Aberdeen, KY


Your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma - which is living with the results of other people's thinking. Don't let the noise of other's opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.
 
- Steve Jobs


A limited liability company (LLC) is similar to a partnership but has the liability protection for the owners that a corporation offers without the formalities, paperwork and fees. All new LLCs must file articles of organization with their secretary of state's office. Check out a free preview at 1-2-Law.

You should draft an operating agreement for your LLC that spells out the details of the business arrangement, including members' percentage ownership, roles, rights and responsibilities.

The LLC structure is a good way to "wall off" your personal assets from your company's liabilities, offering protection for your personal assets in the event of a liability or judgment against your business.

A limited liability company (LLC) also has certain tax advantages. The business itself is not responsible for taxes on its profits. Instead, the LLC's owners, known as "members," report their share of business profit and loss on their personal tax returns, similar to tax reporting for a general partnership. This is known as "pass-through" taxation.


There are many benefits to an LLC structure.

  • Protected assets: LLCs provide limited liability protection to their owners (members), who are typically not personally responsible for the business debts and liabilities of the LLC. Creditors cannot pursue the personal assets (house, savings accounts, etc.) of the owners to pay business debts. Conversely, in a sole proprietorship or general partnership, owners and the business are legally considered the same—leaving personal assets vulnerable.
  • Pass-through taxation: LLCs typically do not pay taxes at the business level. Any business income or loss is "passed-through" to owners and reported on their personal income tax returns. Any tax due is paid at the individual level.
  • Heightened credibility: Forming an LLC may help a new business establish credibility with potential customers, employees, vendors and partners because they see you have made a formal commitment to your business.
  • Limited compliance requirements: LLCs face fewer state-imposed annual requirements and ongoing formalities than S corporations and C corporations.
  • Flexible management structure: LLCs are free to establish any organizational structure agreed upon by the company owners. LLCs can be managed by the owners (members) or by managers, unlike corporations which have a board of directors who oversee the major business decisions of the company and officers who manage the day-to-day affairs.
  • Few restrictions: There are few restrictions on who can be an LLC owner or how many owners an LLC may have (unlike S corporations).


  • Potential LLC Disadvantages

    LLCs may have some potential disadvantages, including:

  • Formation and ongoing expenses: To form an LLC, Articles of Organization must be filed with the state and the applicable state filing fees paid. Many states impose ongoing fees, such as annual report and/or franchise tax fees. While these fees often are not very expensive for small businesses, LLC formation is more expensive than that of a sole proprietorship or general partnership, both of which are not required to file formation documents with the state. A few states, such as New York and Arizona, also require LLC owners to publish notice of the LLC formation in local newspapers for several weeks. This can be costly.
  • Transferable ownership: Ownership in an LLC is often harder to transfer than with a corporation. With corporations, shares of stock can be sold to increase ownership. Typically with LLCs, all owners must approve adding new owners or altering the ownership percentages of existing owners.
  • Less precedent: Because the LLC is a newer type of business structure, there is not as much case law or legal precedent for LLCs as there is for corporations.

  •  
    Personalize & Print a Free KY Last Will Download this Document
    Page 1
    Page 2
    Page 3
    Page 4
    Page 5
    Page 6
    Page 7
    Page 8
    Page 9
    Page 10
     
    Personalize & Print a Free KY Living Will Download this Document
    Page 1
    Page 2
    Page 3
    Page 4
    Page 5
    Page 6
    Page 7
    Page 8
    Related Legal Services near Aberdeen, KY
    Lofton Rodger W
    928 Broadway St
    Paducah, KY 42001
    (270) 444-9999
    Attorneys,  Social Security & Disability Law Attorneys,  Personal Injury Law Attorneys,  Employment
    Hollon, Thomas K
    186 Main St
    Campton, KY 41301
    (606) 464-9966
    Attorneys
    PSCPS Inc
    108 W Dixie Ave # 200
    Elizabethtown, KY 42701
    (270) 360-9955
    Attorneys
    Monge Gregory L
    2103 Weymouth Dr
    Ashland, KY 41101
    (606) 324-9932
    Attorneys, General Practice Attorneys, Legal Service Plans
    Neal, Thomas E PLLC
    920 Frederica St
    Owensboro, KY 42301
    (270) 926-9911
    Attorneys, Wills, Trusts & Estate Planning Attorneys, Family Law Attorneys
    J Boone Reed Law Office P
    227 N 6th St
    Paducah, KY 42001
    (270) 415-9900
    Personal Injury Law Attorneys, Attorneys, Criminal Law Attorneys
    Reed, Boone ATTY
    227 N 6th St
    Paducah, KY 42001
    (270) 415-9900
    Accident & Property Damage Attorneys, Attorneys, Criminal Law Attorneys
    Edward Faye
    340 E Main Ave
    Bowling Green, KY 42101
    (270) 842-9900
    Immigration & Naturalization Consultants, Title Companies, Attorneys, Immigration Law Attorneys, Rea
    Huddleston, Lee
    1032 College St
    Bowling Green, KY 42101
    (270) 781-9870
    General Practice Attorneys, Attorneys, Legal Service Plans
    Nall Frank
    225 2nd St
    Pikeville, KY 41501
    (606) 433-9860
    Real Estate Attorneys, Attorneys, Legal Service Plans
    Warnock Frank H
    350 Sunset Dr
    Ashland, KY 41101
    (606) 326-9781
    General Practice Attorneys, Attorneys
    Hixson, Casey A Hixson Law Office
    511 E 10th Ave
    Bowling Green, KY 42101
    (270) 780-9655
    Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Personal Injury Law Attorneys
    Smith
    333 Broadway St # 924
    Paducah, KY 42001
    (270) 442-9630
    Accountants-Certified Public,  Attorneys,  Legal Service Plans,  Tax Return Preparation
    Copley Rhonda
    1527 Carter Ave
    Ashland, KY 41101
    (606) 324-9607
    Appellate Practice Attorneys,  Estate Planning Attorneys,  Administrative & Governmental Law Attorne
    Copley, Rhonda - Copley Law Office
    1527 Carter Ave
    Ashland, KY 41101
    (606) 324-9607
    Not available
    Clay Patrck
    415 W Main St
    Frankfort, KY 40601
    (502) 352-9600
    General Practice Attorneys, Attorneys, Legal Service Plans
    Washburn, Burton A III
    139 Memorial Dr
    Paducah, KY 42001
    (270) 442-9600
    Attorneys, Legal Service Plans
    Sullenger Wes
    2320 Broadway St # 402
    Paducah, KY 42001
    (270) 443-9401
    Attorneys, Civil Litigation & Trial Law Attorneys, General Practice Attorneys
    Terrell Burke B
    165 Deer Path Ln
    Paducah, KY 42001
    (270) 443-9401
    Attorneys
    Terrell Law Firm
    1324 Jefferson St
    Paducah, KY 42001
    (270) 443-9401
    Attorneys, General Practice Attorneys
    Terrell, Burke B
    2320 Broadway St Suite 407
    Paducah, KY 42001
    (270) 443-9401
    Attorneys, Family Law Attorneys
    Holmes Elaina L
    1544 Winchester Ave # 912
    Ashland, KY 41101
    (606) 547-9292
    Attorneys, Social Security & Disability Law Attorneys, Accident & Property Damage Attorneys, Legal S
    Holmes Elaina L.
    1544 Winchester Ave
    Ashland, KY 41101
    (606) 547-9292
    Attorneys,  Family Law Attorneys,  Workers Compensation Assistance,  Personal Injury Law Attorneys,
    Singleton Bruce W
    106 W Columbia St
    Somerset, KY 42501
    (606) 679-9261
    Attorneys,  Accident & Property Damage Attorneys,  General Practice Attorneys,  Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US