Easy Questions  
Free Legal Documents

Benefits of a Limited Liability Company (LLC) in Adkins, TX

Benefits of a Limited Liability Company (LLC) in Adkins, TX


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 TX 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 TX 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 Adkins, TX
    Granger & Mueller
    605 W 10th St
    Austin, TX 78701
    (512) 474-9999
    Attorneys, Criminal Law Attorneys
    Mahler, Rick L.
    719 Scott Ave Suite 616
    Wichita Falls, TX 76301
    (940) 723-9999
    Attorneys,  Criminal Law Attorneys,  DUI & DWI Attorneys,  Family Law Attorneys,  Divorce Attorneys
    The Dashner Law Firm
    929 E Esperanza Ave # 25
    McAllen, TX 78501
    (956) 683-9997
    General Practice Attorneys, Attorneys, Legal Service Plans
    Greenway John W
    400 W 15th St
    Austin, TX 78701
    (512) 452-9996
    Attorneys
    Stephen J Davis
    701 Brazos St
    Austin, TX 78701
    (512) 479-9995
    General Practice Attorneys, Attorneys, Legal Service Plans
    Flores Romeo M
    555 N Carancahua St Ste 1200
    Corpus Christi, TX 78401
    (361) 881-9990
    Arbitration Services,  Attorneys,  Mediation Services,  Legal Service Plans
    Dettman, Mark H
    415 W Wall St
    Midland, TX 79701
    (432) 683-9990
    Estate Planning, Probate, & Living Trusts,  Attorneys,  Investment Advisory Service,  Financial Se
    Nelson Susan I
    215 Mary Ave # 310
    Waco, TX 76701
    (254) 754-9990
    General Practice Attorneys, Attorneys, Legal Service Plans
    Carr Emily Ann
    407 E 4th St
    Tyler, TX 75701
    (903) 533-9986
    Attorneys
    Sheets Jeff
    1213 Avenue K
    Lubbock, TX 79401
    (806) 771-9985
    General Practice Attorneys, Attorneys, Legal Service Plans
    Scott, Roy
    407 N Big Spring St Ste 200
    Midland, TX 79701
    (432) 570-9979
    Attorneys, General Practice Attorneys, Legal Service Plans
    Vincent Gonzalez
    606 N Carancahua St Suite 506
    Corpus Christi, TX 78401
    (361) 883-9966
    Attorneys,  Legal Service Plans,  Drug Charges Attorneys,  Criminal Law Attorneys,  Federal Law Atto
    Williams Allan L
    1100 West Ave
    Austin, TX 78701
    (512) 477-9959
    General Practice Attorneys, Attorneys
    Forsythe Andrew J
    1100 West Ave
    Austin, TX 78701
    (512) 477-9959
    Attorneys, Legal Service Plans
    Stern Rebecca L
    316 W 12th St, Ste. 402
    Austin, TX 78701
    (512) 481-9950
    Attorneys,  Family Law Attorneys,  Estate Planning, Probate, & Living Trusts,  Arbitration & Media
    Schmidt Michael B
    555 N Carancahua St # 1550
    Corpus Christi, TX 78401
    (361) 884-9949
    Attorneys,  General Practice Attorneys,  Legal Service Plans,  Bankruptcy Law Attorneys
    Minna Lynn
    3102 Maple Ave # 220
    Dallas, TX 75201
    (214) 528-9948
    General Practice Attorneys, Attorneys
    Dan Shelley
    305 W 13th St
    Austin, TX 78701
    (512) 478-9937
    General Practice Attorneys, Attorneys
    Strauss Lisa
    4545 Bissonnet St
    Bellaire, TX 77401
    (713) 449-9922
    Attorneys, DUI & DWI Attorneys, Legal Service Plans, Traffic Law Attorneys
    Vier Chad
    207 E Frank Ave # 100
    Lufkin, TX 75901
    (936) 632-9922
    Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
    CASTILLO DAMIAN - ATTORNEY
    407 N Big Spring St
    Midland, TX 79701
    (432) 570-9919
    Attorneys
    Bradley David
    500 S Taylor St Suite 900
    Amarillo, TX 79101
    (806) 376-9914
    Attorneys
    Spencer Jamie
    812 San Antonio St
    Austin, TX 78701
    (512) 472-9909
    Attorneys
    Roberto Puente
    602 N McColl Rd
    McAllen, TX 78501
    (956) 618-9904
    Attorneys, General Practice Attorneys, Legal Service Plans, Immigration & Naturalization Consultants
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US