Easy Questions  
Free Legal Documents

Benefits of a Limited Liability Company (LLC) in Adel, OR

Benefits of a Limited Liability Company (LLC) in Adel, OR


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.

  •  
    Edit, Download, & Print a Free
    Oregon Last Will
    Page 1
    Page 2
    Page 3
    Page 4
    Page 5
    Page 6
    Page 7
    Page 8
    Page 9
    Page 10
     
    Edit, Download, & Print a Free
    Oregon Living Will
    Page 1
    Page 2
    Page 3
    Page 4
    Page 5
    Page 6
    Page 7
    Page 8
     
    Edit, Download, & Print a Free
    Oregon Power of Attorney
    Page 1
    Page 2
    Page 3
    Page 4
    Page 5
    Related Legal Services near Adel, OR
    Holmes Sherman W
    10414 NE Sandy Blvd
    Portland, OR 97220
    (503) 255-9777
    Attorneys
    Charter Joseph
    450 Siskiyou Blvd # 3
    Ashland, OR 97520
    (541) 488-9556
    Attorneys
    Joseph M. Chapter
    928 C St
    Ashland, OR 97520
    (541) 488-9556
    Attorneys, Legal Service Plans
    Tindell Raymond S
    11112 NE Halsey St # A
    Portland, OR 97220
    (503) 257-9268
    Attorneys
    Vincent Charles
    590 Commercial Ave
    Coos Bay, OR 97420
    (541) 888-9071
    Attorneys, Legal Service Plans
    Law Offices
    622 Siskiyou Blvd
    Ashland, OR 97520
    (541) 482-8492
    Attorneys, General Practice Attorneys
    David Seulean PC
    622 Siskiyou Blvd
    Ashland, OR 97520
    (541) 482-8492
    Attorneys, Legal Service Plans
    Davis, Hearn & Anderson PC
    515 E Main St
    Ashland, OR 97520
    (541) 210-8044
    Probate Law Attorneys,  Attorneys,  Family Law Attorneys,  Wills, Trusts & Estate Planning Attorney
    Bankruptcy Law Center
    4721 NE 102nd Ave
    Portland, OR 97220
    (503) 253-7777
    Bankruptcy Law Attorneys,  Legal Service Plans,  Civil Litigation & Trial Law Attorneys,  Bankruptcy
    Trierweiler Todd
    4721 NE 102nd Ave
    Portland, OR 97220
    (503) 253-7777
    Legal Service Plans,  Attorneys,  General Practice Attorneys,  Bankruptcy Law Attorneys
    Lasken Glen J
    129 NE 102nd Ave
    Portland, OR 97220
    (800) 896-6976
    Attorneys
    Simms Gary L
    585 Nyla Ln
    Ashland, OR 97520
    (541) 482-6790
    Attorneys, Legal Service Plans
    De Plois Jacques P
    650 Newmark Ave
    Coos Bay, OR 97420
    (541) 888-6338
    Attorneys, Family Law Attorneys, Probate Law Attorneys
    Eames Tod
    11155 NE Halsey St
    Portland, OR 97220
    (503) 254-6313
    Attorneys
    Cohen Emily S
    10535 NE Shaver St
    Portland, OR 97220
    (503) 253-6016
    Attorneys
    McNutt Scott
    1052 Southwest Blvd
    Coos Bay, OR 97420
    (541) 269-5821
    Employee Benefits & Worker Compensation Attorneys,  Social Security & Disability Law Attorneys,  Acc
    Landes Donald H
    971 Commercial Ave
    Coos Bay, OR 97420
    (541) 269-5767
    Attorneys, Probate Law Attorneys
    Sario Markku A
    206 S Humbolt St
    Canyon City, OR 97820
    (541) 575-5750
    Attorneys, Criminal Law Attorneys
    Dorsey David A
    243 W Commercial Ave
    Coos Bay, OR 97420
    (541) 269-5566
    Attorneys, Family Law Attorneys, Legal Service Plans
    Joelson Gordon A
    243 W Commercial Ave
    Coos Bay, OR 97420
    (541) 269-5566
    Estate Planning Attorneys,  Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Corporation & P
    Wilgers Steven L
    243 W Commercial Ave
    Coos Bay, OR 97420
    (541) 269-5566
    Business Law Attorneys,  Real Estate Attorneys,  General Practice Attorneys,  Estate Planning Attorn
    Finneran Lawrence
    405 N 5th St
    Coos Bay, OR 97420
    (541) 269-5565
    Corporation & Partnership Law Attorneys,  Real Estate Attorneys,  Attorneys,  Business Law Attorneys
    Thompson Martin E
    53 W Washington St
    Burns, OR 97720
    (541) 573-5299
    General Practice Attorneys, Attorneys, Legal Service Plans
    Knudsen Sam
    598 Anderson Ave # 102
    Coos Bay, OR 97420
    (541) 267-5297
    Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US