Easy Questions  
Free Legal Documents

Advantages and Disadvantages of a Limited Liability Company (LLC) in Adell, WI

Advantages and Disadvantages of a Limited Liability Company (LLC) in Adell, WI


Grit is often the single-most predictor of success.
 
- Jonah Lehrer


Overview:


A Limited Liability Company (LLC) is a legal business entity that combines the liability protection of a corporation, the operating flexibility of a partnership, and the tax benefits of a sole proprietorship. Though the rules for forming an LLC vary by state, it is a popular option for many start-up businesses.

Advantages:

Limited Personal Liability and Exposure

One advantage of an LLC is the limited liability shield, which protects the personal assets of its members. Creditors, typically, cannot hold members personally responsible for the debts and liabilities of the business. Members can only be liable to the extent of their business investment.

Pass-through Taxation

Though there are an array of tax options for a Limited Liability Company; an LLC is generally treated as a "pass-through" entity. Profits and losses pass through the business to the members and are taxed at the personal level. The business itself is not taxed. Reporting is done on members' individual income tax returns. No double taxation with both the company and the owner(s) paying taxes on the earnings of the business.

Operational Flexibility & Simplicity

An LLC is much less formal than a corporation. Record keeping and administrative procedures are not as onerous. There are no quarterly and annual meetings, or tax filings. Neither is there a board of directors.

Legitimacy

Registering a company as an LLC adds credibility to a business, and can help in brand building and marketing to potential clients and suppliers. In addition, the company can enter into contracts on its own, and also acquire property.

Disadvantages:

Higher Fees

An LLC typically pays higher filing fees compared to some other business entities or sole proprietorships. Additionally, some states require annual renewal fees or franchise taxes. It is difficult for an LLC to attract additional investment because the company does not have the ability to issue stocks and bonds. Members have to finance its business activities, or take in private investors. Getting a loan can be tough, especially for small and start-up companies. The company may have to use its business, or personal, assets to guarantee business loans.

Fewer fringe benefits

Employees of an LLC who receive fringe benefits, for example, medical insurance and parking, must treat these benefits as taxable income. This is also true for employees who own more than 2% of an S-corporation. However, employees of a C-corporation do not have to report fringe benefits as taxable income.
 
Edit, Download, & Print a Free
Wisconsin 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
Wisconsin Living Will
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
 
Edit, Download, & Print a Free
Wisconsin Power of Attorney
Page 1
Page 2
Page 3
Page 4
Page 5
Related Legal Services near Adell, WI
Miller George E
505 S Dewey St Ste 214
Eau Claire, WI 54701
(715) 830-9982
Attorneys
Arnett Law Offices
529 S Jefferson St # 202
Green Bay, WI 54301
(920) 430-9937
General Practice Attorneys, Attorneys
Harnitz Law Office
404 N Main St
Oshkosh, WI 54901
(920) 456-9933
Corporation & Partnership Law Attorneys, Attorneys, General Practice Attorneys
Mancoske Debra
122 S Washington St
Green Bay, WI 54301
(920) 430-9909
Attorneys,  Criminal Law Attorneys,  Legal Service Plans,  Traffic Law Attorneys,  Family Law Attorn
Federal Defenders Services
801 E Walnut St
Green Bay, WI 54301
(920) 430-9900
Attorneys, Criminal Law Attorneys
Grenisen James P
1139 Tyler St
La Crosse, WI 54601
(608) 784-9777
Attorneys
Spangler, Nodolf Bruder & Klinkhammer LLC
4410 Golf Ter
Eau Claire, WI 54701
(715) 830-9771
Probate Law Attorneys,  Attorneys,  Accident & Property Damage Attorneys,  Business Law Attorneys,  
Christopher T. Froelich
125 S Quincy St
Green Bay, WI 54301
(920) 430-9640
Accident & Property Damage Attorneys,  Attorneys,  Criminal Law Attorneys,  DUI & DWI Attorneys,  Pe
Field David W
204 E Grand Ave
Eau Claire, WI 54701
(715) 836-9607
Attorneys,  Divorce Attorneys,  Elder Law Attorneys,  Wills, Trusts & Estate Planning Attorneys,  R
Williams, Charles E
128 State St
Oshkosh, WI 54901
(920) 376-9556
Wills, Trusts & Estate Planning Attorneys,  Attorneys,  Business Law Attorneys,  Real Estate Attorn
Public Defender
205 5th Ave S # 200
La Crosse, WI 54601
(608) 785-9531
Attorneys, State Government
Pedersen & Shaha Law Firm
2050 Riverside Dr
Green Bay, WI 54301
(920) 884-9500
Attorneys, Bankruptcy Law Attorneys
Noteboom Philip L
5209 Rib Mountain Dr
Wausau, WI 54401
(715) 359-9487
General Practice Attorneys, Attorneys
Edelstein Law LLC
204 Church Ave
Oshkosh, WI 54901
(920) 376-9460
Attorneys,  Criminal Law Attorneys,  Legal Service Plans,  Civil Litigation & Trial Law Attorneys,  
Jackman Scott
2620 Stewart Ave # 314
Wausau, WI 54401
(715) 298-9445
General Practice Attorneys, Attorneys, Legal Service Plans
Wickert Gary A
801 E Walnut St
Green Bay, WI 54301
(920) 433-9425
Attorneys, Corporation & Partnership Law Attorneys, Business Law Attorneys, Legal Service Plans
Pedretti, Timothy J atty
415 S Washington St
Green Bay, WI 54301
(920) 432-9399
Attorneys,  Criminal Law Attorneys,  Divorce Attorneys,  Family Law Attorneys
Beinlich Jeffrey C
415 S Washington St
Green Bay, WI 54301
(920) 432-9399
Attorneys, Legal Service Plans
Beck Laura J
222 Cherry St
Green Bay, WI 54301
(920) 435-9393
Attorneys, Family Law Attorneys, Legal Service Plans
Hermes Michael
222 Cherry St
Green Bay, WI 54301
(920) 435-9393
Attorneys, Legal Service Plans
Metzler Timm Treleven Pahl & Beck S C
222 Cherry St
Green Bay, WI 54301
(920) 435-9393
Attorneys
Kowalkowski Frank W
318 S Washington St # 300
Green Bay, WI 54301
(920) 435-9378
Attorneys, Legal Service Plans
Rohan Thomas V
318 S Washington St # 300
Green Bay, WI 54301
(920) 435-9378
Estate Planning Attorneys,  Attorneys,  Legal Service Plans,  Business Law Attorneys,  Real Estate A
Ulatowski, Adrian T - Davis & Kuelthau
318 S Washington St # 300
Green Bay, WI 54301
(920) 435-9378
Attorneys, Legal Service Plans, Civil Litigation & Trial Law Attorneys, Business Law Attorneys, Real
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US