Easy Questions  
Free Legal Documents

Advantages and Disadvantages of a Limited Liability Company (LLC) in Atomic City, ID

Advantages and Disadvantages of a Limited Liability Company (LLC) in Atomic City, ID


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 ID 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 ID 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 Atomic City, ID
Redal & Redal Law Offices
5431 N Government Way # 101A
Coeur D Alene, ID 83815
(208) 676-9999
Attorneys,  Criminal Law Attorneys,  General Practice Attorneys,  Bankruptcy Law Attorneys,  Family
The Simaytis Law Office, P.C.
315 W Dalton Ave
Coeur D Alene, ID 83815
(208) 772-9700
Attorneys, General Practice Attorneys, Legal Service Plans
Mesenbrink Law Offices Inc.
5431 N Government Way
Coeur D Alene, ID 83815
(208) 676-8200
Attorneys, General Practice Attorneys, Legal Service Plans
Dean Jr Charles R
320 E Neider Ave # 103
Coeur D Alene, ID 83815
(208) 664-7794
Attorneys, Legal Service Plans
Mattison Law Offices P
402 W Canfield Ave # 2
Coeur D Alene, ID 83815
(208) 667-7621
Attorneys
Bistline Arthur M
5431 N Government Way # 101B
Coeur D Alene, ID 83815
(208) 665-7270
Attorneys, Legal Service Plans
Briseno Law Offices
100 E Neider Ave # C
Coeur D Alene, ID 83815
(208) 665-7080
Attorneys, Family Law Attorneys, General Practice Attorneys
US Attorney
6450 N Mineral Dr Ste 230
Coeur D Alene, ID 83815
(208) 667-6568
Attorneys
Bankruptcy Clinic
564 Prairie Ave
Dalton Gardens, ID 83815
(208) 704-6414
Bankruptcy Law Attorneys, Bankruptcy Services
Jacquot Law PLLC -
7671 N. 4th St.
Dalton Gardens, ID 83815
(208) 209-6399
Family Law Attorneys, Estate Planning, Probate, & Living Trusts, Immigration Law Attorneys, Consumer
Purviance Larry D
5920 N Government Way # 4
Dalton Gardens, ID 83815
(208) 635-5389
Attorneys, Legal Service Plans
Simpson Brian J
320 E Neider Ave
Coeur D Alene, ID 83815
(208) 765-5126
Attorneys, Legal Service Plans
Holt Law Office
1322 W Kathleen Ave
Coeur D Alene, ID 83815
(208) 664-5011
Attorneys, General Practice Attorneys
S L Start & Assoc
280 W Prairie Ave # 4
Coeur D Alene, ID 83815
(208) 772-4639
Attorneys, Legal Service Plans
Bendell Law, PLLC
842 W Kathleen Ave
Coeur D Alene, ID 83815
(208) 665-4600
Attorneys,  Criminal Law Attorneys,  Real Estate Attorneys,  Personal Injury Law Attorneys
Grupp Matthew
842 W Kathleen Ave
Coeur D Alene, ID 83815
(208) 665-4600
Attorneys, General Practice Attorneys, Legal Service Plans
Amberson Tom
100 E Neider Ave # B
Coeur D Alene, ID 83815
(208) 292-4014
Attorneys
Burke-Love Muriel M
100 E Neider Ave
Coeur D Alene, ID 83815
(208) 209-3940
Attorneys
Holt Kevin P
1322 W Kathleen Ave
Coeur D Alene, ID 83815
(208) 667-3400
Attorneys
Wetzel Dana L R
1322 W Kathleen Ave
Coeur D Alene, ID 83815
(208) 667-3400
Attorneys
Attorney James Bendell
842 W Kathleen Ave
Coeur D Alene, ID 83815
(208) 228-0191
Attorneys, Elder Law Attorneys, Estate Planning Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US