Easy Questions  
Free Legal Documents

Orientation to Limited Liability Companies (LLCs) in Alta, CA

Orientation to Limited Liability Companies (LLCs) in Alta, CA


I've missed more than 9,000 shots in my career. I've lost almost 300 games. 26 times I've been trusted to take the game winning shot and missed. I've failed over and over and over again in my life and that is why I succeed.
 
- Michael Jordan


A Limited Liability Company (LLC), just like a corporation, offers protection from personal liability for business debts. But, unlike a corporation, which pays its own taxes, an LLC is a pass-through tax entity in which the profits and losses pass-through its owners who report it on their personal tax returns.


How to Form an LLC

  • File "Articles of Organization" with your state government including the name, address, and phone number of the business, and the name of the person who is the "registered agent" of the company. Depending on the state, the names of all LLC members are sometimes requested.
  • Create a written LLC operating agreement. This is a crucial document because it includes the rights and responsibilities of the LLC members. It can also include the percentage interest and the shares of profits of the members.
  • Main Features of an LLC



    Limited Personal Liability

    All LLC members are spared from personal liability for business claims and debts. A creditor cannot go after them and demand payment from their personal assets. The assets of the LLC are used to pay off debts, and the only thing members stand to lose is their investment in the business.

    Exceptions to Limited Personal Liability

    Limited personal liability can be enjoyed by an LLC when doing business transactions, but this protection is not fixed. This particular downside also applies to corporations. An LLC owner can be held liable if he/she:

  • Intentionally does something fraudulent, illegal, or reckless that causes harm to the company or to someone else.
  • Fails to pay taxes withheld from employees' wages.
  • Personally and directly injures someone.
  • Personally guarantees a bank loan or a business debt on which the LLC defaults.
  • Treats the LLC as an extension of his/her personal affairs rather than as a separate legal entity.


  • Business Protection

    Your personal assets can be protected by a good liability insurance which is not possible with a limited liability protection. If you are practicing your craft and accidentally injure someone, your liability insurance policy will cover you. In the event of a court proceeding, your insurance can protect your personal assets if the limited liability status is disregarded by the court.

    LLC Taxes

    An LLC is a "pass-through" entity where the business income passes through the business to the LLC members who will report their share of profits or losses on their individual income tax returns. All LLC members make a quarterly estimated tax payment to the IRS.

    LLC Management

    Member management means participating equally in the management of business. Manager management refers to designating one or more owners, or even outsiders, to take responsibility for managing the LLC. In a manager-managed LLC, only those named "manager" can vote with regards to management decisions and act as an agent of the LLC.


    Ending an LLC

    Depending on the laws of your state, or as indicated in the operating agreement, when one member leaves, the LLC dissolves. The remaining members will be responsible for meeting the business obligations left behind, pay the debts, and divide the remaining assets and profits among themselves. The decision to create a new LLC with the remaining members can be discussed. In order to avoid this kind of abrupt ending, your LLC operating agreement can include a "buy-sell" or "buyout" clause with guidelines on what will happen if a member decides to leave to pursue other interests, retires, or dies.

     
    Personalize & Print a Free CA 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 CA 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 Alta, CA
    A & D Immigration Svc
    1412 17th St # 256
    Bakersfield, CA 93301
    (661) 323-9999
    Immigration Law Attorneys, Attorneys, Immigration & Naturalization Consultants
    Kim & Mira Attorney's At Law
    3022 International Blvd Ste 406
    Oakland, CA 94601
    (510) 437-9998
    Attorneys, General Practice Attorneys, Legal Service Plans
    Karen C Smith
    1567 Yuba St
    Redding, CA 96001
    (530) 244-9998
    Family Law Attorneys,  Attorneys,  Divorce Assistance,  Child Custody Attorneys,  Divorce Attorneys,
    Paralegal Services Annick Haddad
    14416 Victory Blvd Suite 201
    Van Nuys, CA 91401
    (818) 445-9992
    Paralegals, Legal Document Assistance
    Crary Bruce P
    1484 E Main St # 2
    Ventura, CA 93001
    (805) 641-9992
    Labor & Employment Law Attorneys, Attorneys
    Strauss Law Group
    121 N Fir St # F
    Ventura, CA 93001
    (805) 641-9992
    Civil Litigation & Trial Law Attorneys, Attorneys, Labor & Employment Law Attorneys, Business Law At
    The Lawyers Group Inc.
    902 N Grand Ave
    Santa Ana, CA 92701
    (714) 558-9990
    Personal Injury Law Attorneys,  Attorneys,  Legal Service Plans,  General Practice Attorneys
    Easy Solutions Paralegal Svc
    6277 Van Nuys Blvd
    Van Nuys, CA 91401
    (818) 442-9982
    Paralegals
    Addison, Kandy Paralegal Svs
    4505 Allstate Drive, # 217
    Riverside, CA 92501
    (951) 680-9980
    Paralegals, Attorneys
    Murchison & Cummings
    200 W Santa Ana Blvd # 801
    Santa Ana, CA 92701
    (714) 972-9977
    Attorneys, General Practice Attorneys, Labor & Employment Law Attorneys, Product Liability Law Attor
    Akopyan Law Group Pasadena Civil Litigation
    300 N Lake Ave
    Pasadena, CA 91101
    (818) 509-9975
    Corporation & Partnership Law Attorneys,  Personal Injury Law Attorneys,  Attorneys,  Labor & Employ
    Solucions Hispanas
    2117 Lake Ave
    Altadena, CA 91001
    (626) 794-9974
    Immigration Law Attorneys, Attorneys, Immigration & Naturalization Consultants
    Chin, Geoffrey D
    221 E Walnut St
    Pasadena, CA 91101
    (626) 229-9971
    Probate Law Attorneys, Business Law Attorneys, Elder Law Attorneys, Wills, Trusts & Estate Planning
    California Attorneys Group
    1314 7th St
    Santa Monica, CA 90401
    (310) 395-9954
    General Practice Attorneys, Attorneys, Legal Service Plans
    James C. Stevens
    402 West Broadway, Suite 400
    San Diego, CA 92101
    (619) 934-9946
    Real Estate Attorneys
    Thomas G Roche
    1850 5th Ave
    San Diego, CA 92101
    (619) 239-9945
    Attorneys, Legal Service Plans
    Kalikas Anthony
    2305 India St
    San Diego, CA 92101
    (858) 452-9937
    General Practice Attorneys, Attorneys
    Universal Law Group
    430 S Garfield Ave Ste 300
    Alhambra, CA 91801
    (626) 308-9936
    Attorneys, Legal Service Plans, Criminal Law Attorneys, Immigration Law Attorneys, Litigation & Tort
    Albelais Alfonso
    3730 12th St
    Riverside, CA 92501
    (951) 682-9933
    Attorneys Referral & Information Service, Attorneys
    Parker & Sander
    755 Santa Rosa St
    San Luis Obispo, CA 93401
    (805) 541-9930
    General Practice Attorneys, Attorneys
    Orlando Megan G
    1541 Ocean Ave # 200
    Santa Monica, CA 90401
    (310) 451-9928
    General Practice Attorneys, Attorneys
    Linda A Jazo
    1901 1st Ave
    San Diego, CA 92101
    (619) 235-9925
    Business Law Attorneys,  Attorneys,  Accident & Property Damage Attorneys,  Corporation & Partnershi
    Stuart J. Zander
    707 Broadway, Suite 700
    San Diego, CA 92101
    (619) 798-9925
    Family Law Attorneys, General Practice Attorneys, Traffic Law Attorneys, Attorneys
    Zampi Determan & Erickson LLP
    225 Broadway Suite 1450
    San Diego, CA 92101
    (619) 231-9920
    Attorneys,  Legal Service Plans,  Personal Injury Law Attorneys,  Schools & Education Law Attorneys,
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US