Easy Questions  
Free Legal Documents

Benefits of a Limited Liability Company (LLC) in Adger, AL

Benefits of a Limited Liability Company (LLC) in Adger, AL


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
    Alabama 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
    Alabama Living Will
    Page 1
    Page 2
    Page 3
    Page 4
    Page 5
    Page 6
    Page 7
    Page 8
     
    Edit, Download, & Print a Free
    Alabama Power of Attorney
    Page 1
    Page 2
    Page 3
    Page 4
    Page 5
    Related Legal Services near Adger, AL
    Wilson Jr James E
    732 Carter Hill Rd
    Montgomery, AL 36106
    (334) 834-9899
    Attorneys, Legal Service Plans
    Total Attorneys - DUI
    PO Box 273984
    Billingsley, AL 36006
    (334) 259-9549
    Attorneys, Legal Service Plans
    Halstrom, Timothy
    4170 Lomac St
    Montgomery, AL 36106
    (334) 272-9524
    General Practice Attorneys, Attorneys
    Dwayne L Brown
    4150 Carmichael Rd Ste A
    Montgomery, AL 36106
    (334) 285-9444
    Attorneys, General Practice Attorneys, Legal Service Plans
    Padula Law Firm PC
    119 Church St
    Rainbow City, AL 35906
    (256) 442-9100
    General Practice Attorneys, Attorneys, Legal Service Plans
    The McAdory Firm, LLC
    200 88th Street South
    Birmingham, AL 35206
    (205) 370-9094
    Bankruptcy Law Attorneys,  Estate Planning Attorneys,  Civil Litigation & Trial Law Attorneys,  Divo
    Roebuck M Lloyd
    1810 Old Government St
    Mobile, AL 36606
    (251) 479-9010
    Attorneys, General Practice Attorneys, Legal Service Plans
    Hollifield Charles P
    3225 Lexington Rd
    Montgomery, AL 36106
    (334) 263-9010
    Attorneys, Legal Service Plans
    Thiry & Caddell
    1911 Government St
    Mobile, AL 36606
    (251) 478-8880
    Legal Service Plans,  Accident & Property Damage Attorneys,  Bankruptcy Law Attorneys,  Corporation
    Jack "Trip" Smalley
    2607 Dauphin Street, Suite C
    Mobile, AL 36606
    (251) 610-8744
    Family Law Attorneys,  Divorce Attorneys,  Commercial Law Attorneys,  Personal Injury Law Attorneys,
    Robert M Harrington JR
    4612 Fox Den Ln
    Montgomery, AL 36106
    (334) 272-8603
    General Practice Attorneys
    Howard Rick A
    4001 Carmichael Rd Suite 300
    Montgomery, AL 36106
    (334) 215-8585
    Attorneys,  Labor & Employment Law Attorneys,  Civil Litigation & Trial Law Attorneys,  Discriminati
    Howard Rick A
    4001 Carmichael Rd Ste 300
    Montgomery, AL 36106
    (334) 215-8585
    Attorneys, Civil Litigation & Trial Law Attorneys, Insurance Attorneys, Product Liability Law Attorn
    Betts Laura
    4001 Carmichael Rd Ste 300
    Montgomery, AL 36106
    (334) 215-8585
    Attorneys, General Practice Attorneys
    Darneille Jason D
    4001 Carmichael Rd Ste 300
    Montgomery, AL 36106
    (334) 215-8585
    Attorneys, Legal Service Plans
    Goldfinger Roy S PC
    4472 White Acres Rd
    Montgomery, AL 36106
    (334) 395-8500
    General Practice Attorneys, Attorneys, Legal Service Plans
    Pappanastos John N
    4131 Carmichael Rd Ste 2
    Montgomery, AL 36106
    (334) 264-8500
    General Practice Attorneys, Attorneys
    Waldrop And Associates PC
    6700 Odyssey Dr NW Ste 105
    Huntsville, AL 35806
    (256) 539-8343
    Family Law Attorneys, Tax Attorneys, Attorneys
    McTighe James H
    4750 Woodmere Blvd
    Montgomery, AL 36106
    (334) 356-8337
    Attorneys
    Grainger Legal Services LLC
    4220 Carmichael Ct N
    Montgomery, AL 36106
    (334) 523-8101
    Estate Planning Attorneys,  Attorneys,  Legal Service Plans,  Family Law Attorneys,  Probate Law Att
    Abell William K
    4171 Lomac St # D
    Montgomery, AL 36106
    (334) 271-8008
    Attorneys, Family Law Attorneys, Social Security & Disability Law Attorneys, Corporation & Partnersh
    Harrison Gammons & Rawlinson PC
    2430 L & N Dr SW
    Huntsville, AL 35806
    (256) 533-7711
    Real Estate Attorneys,  Attorneys,  Title Companies,  Insurance
    McLeod Vonda S. LLC
    4131 Carmichael Rd
    Montgomery, AL 36106
    (334) 245-7711
    Personal Injury Law Attorneys, Attorneys, Social Security & Disability Law Attorneys
    Blevins Jerry M Attorney
    2800 Zelda Rd # 200-3
    Montgomery, AL 36106
    (334) 262-7600
    Criminal Law Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US