Easy Questions  
Free Legal Documents

Advantages and Disadvantages of a Limited Liability Company (LLC) in Adolph, MN

Advantages and Disadvantages of a Limited Liability Company (LLC) in Adolph, MN


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.
 
Personalize & Print a Free MN 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 MN 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 Adolph, MN
Walsh & Gaertner, P.A.
24 4th St E
Saint Paul, MN 55101
(651) 228-9968
Criminal Law Attorneys,  Family Law Attorneys,  Social Security & Disability Law Attorneys,  Persona
Sunray Law Office
PO Box 67
Brainerd, MN 56401
(218) 270-9938
Attorneys, General Practice Attorneys, Legal Service Plans
Austin Advocacy and Law Center
212 2nd Ave N
Minneapolis, MN 55401
(612) 200-9919
General Practice Attorneys, Attorneys, Legal Service Plans
McNeilly Law Firm
333 Washington Ave N Ste 300
Minneapolis, MN 55401
(612) 349-9866
Attorneys, Legal Service Plans, Criminal Law Attorneys, Juvenile Law Attorneys, Corporation & Partne
Nolen Law Office
333 Washington Ave N Ste 300
Minneapolis, MN 55401
(612) 373-9844
General Practice Attorneys, Attorneys
Minnesota Disability Law Center
12 Civic Center Plz Ste 3000A
Mankato, MN 56001
(507) 389-9826
Attorneys, General Practice Attorneys, Legal Service Plans
Cutshall Law Offices PA
333 Washington Ave N Ste 317
Minneapolis, MN 55401
(612) 373-9818
Attorneys, General Practice Attorneys, Legal Service Plans
Kitzmann Stuart J
916 Washington Ave
Detroit Lakes, MN 56501
(218) 846-9712
Attorneys,  Family Law Attorneys,  DUI & DWI Attorneys,  General Practice Attorneys,  Legal Service
Fitzpatrick Thomas A
411 Front St
Brainerd, MN 56401
(218) 829-9692
Attorneys,  Labor & Employment Law Attorneys,  Corporation & Partnership Law Attorneys,  Real Estate
Western Minnesota Legal Svc
415 7th St SW
Willmar, MN 56201
(320) 235-9600
Attorneys, Legal Service Plans
Cooper Law Firm
1201 Yale Place-Loving Grn E, Bldg Ste
Minneapolis, MN 55401
(651) 225-9559
Attorneys, General Practice Attorneys, Legal Service Plans
Koslow & Associates In Butler Square Bldg
123 N 3rd St
Minneapolis, MN 55401
(612) 252-9488
Attorneys, Legal Service Plans
Anderson Gwen M
803 W Saint Germain St
Saint Cloud, MN 56301
(320) 240-9423
Attorneys, Legal Service Plans
Jeddeloh & Snyder PA
803 W Saint Germain St Germain
Saint Cloud, MN 56301
(320) 240-9423
Probate Law Attorneys,  Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Wills, Trusts & Esta
Bethel and Associates
336 Robert St N
Saint Paul, MN 55101
(651) 292-9406
Corporation & Partnership Law Attorneys, Attorneys, Business Law Attorneys
Nelson Eric
400 2nd Ave S # 700
Minneapolis, MN 55401
(612) 321-9402
Attorneys
Simmonds & Wright LLP
881 E Madison Ave
Mankato, MN 56001
(507) 205-9398
Accident & Property Damage Attorneys, Personal Injury Law Attorneys, Attorneys
Richard A. Ohlsen
417 Laurel St
Brainerd, MN 56401
(218) 825-9334
Bankruptcy Law Attorneys,  Attorneys,  Family Law Attorneys,  Legal Service Plans
Klaers Michael J Cpa/Atty
416 6th St SW
Willmar, MN 56201
(320) 235-9318
Attorneys, Legal Service Plans
Culberth Celeste
444 Cedar St # 1050
Saint Paul, MN 55101
(651) 290-9300
General Practice Attorneys, Attorneys
Charpentier & Lange
718 Front St
Brainerd, MN 56401
(855) 334-9281
Probate Law Attorneys,  Attorneys,  Family Law Attorneys,  Wills, Trusts & Estate Planning Attorney
Biglow Michael J
401 2nd Ave S
Minneapolis, MN 55401
(612) 339-9221
General Practice Attorneys, Attorneys, Legal Service Plans
Lackore Ramona C
432 Litchfield Ave SW
Willmar, MN 56201
(320) 235-9203
Attorneys, General Practice Attorneys
Enger Robert
215 4th St NW
Bemidji, MN 56601
(218) 751-9201
Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US