12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
 
FINANCIAL & MARITAL

Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
 

Advantages and Disadvantages of a Limited Liability Company (LLC) in Avalon, TX

Advantages and Disadvantages of a Limited Liability Company (LLC) in Avalon, TX


Grit is often the single-most predictor of success.
 
- Jonah Lehrer


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 TX Last Will Create 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 Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Related Legal Services near Avalon, TX
Michael R Boling
2305 W Parker Rd Ste 203
Plano, TX 75023
(214) 378-8988
General Practice Attorneys, Attorneys, Legal Service Plans
Anthony J. Colton
301 Fair Ave
San Antonio, TX 78223
(210) 593-8717
Criminal Law Attorneys, Family Law Attorneys, Immigration Law Attorneys, Traffic Law Attorneys, Atto
Texas Notary Public
5309 Post Ridge Drive
Fort Worth, TX 76123
(817) 313-8615
Attorneys Support & Service Bureaus, Notaries Public, Accounting Services
Amick & Stevens
2222 W Spring Creek Pkwy
Plano, TX 75023
(214) 473-8383
Attorneys, Family Law Attorneys, Legal Service Plans, Social Security & Disability Law Attorneys
Wasmiller Cordova,
12274 Bandera Rd Ste 214
Helotes, TX 78023
(210) 255-8020
Corporation & Partnership Law Attorneys,  Attorneys,  Labor & Employment Law Attorneys,  Business La
Thompson & Kerby Law Offices
4219 85th St
Lubbock, TX 79423
(806) 793-7600
Banking & Mortgage Law Attorneys, Attorneys, Personal Injury Law Attorneys
Durbin Wendy
2723 81st St
Lubbock, TX 79423
(806) 771-7500
Bankruptcy Services,  Bankruptcy Law Attorneys,  Business Bankruptcy Law Attorneys,  General Practic
Angie Trout Law Office
2514 82nd St
Lubbock, TX 79423
(806) 771-7177
Attorneys,  General Practice Attorneys,  Legal Service Plans,  Adoption Law Attorneys,  Civil Litiga
Heimer Law Offices
6633 E Highway 290
Austin, TX 78723
(512) 291-7105
General Practice Attorneys, Attorneys
Santana Israel
1421 Telephone Rd
Houston, TX 77023
(713) 923-6404
Attorneys,  General Practice Attorneys,  Legal Service Plans,  Criminal Law Attorneys,  Estate Plann
The Diaz Firm, PLLC
6207 Sheridan Avenue #210
Austin, TX 78723
(512) 687-6228
Immigration Law Attorneys, Immigration & Naturalization Consultants, Attorneys
Petterson Law Office
12274 Bandera Rd
Helotes, TX 78023
(210) 695-6111
Attorneys,  Estate Planning, Probate, & Living Trusts,  Divorce Assistance,  Real Estate Attorneys
Aaron Carter Law Firm
7606 University Ave # B4
Lubbock, TX 79423
(806) 745-6100
Attorneys,  General Practice Attorneys,  Legal Service Plans,  Criminal Law Attorneys,  Family Law A
Vega Kim
5733 Burwell St
Houston, TX 77023
(713) 928-5557
General Practice Attorneys, Attorneys
Killion Law Firm
2521 74th St
Lubbock, TX 79423
(806) 748-5500
Accident & Property Damage Attorneys, Personal Injury Law Attorneys, Insurance Attorneys
Martinez Raymond
301 Fair Ave
San Antonio, TX 78223
(210) 736-4656
Attorneys, Bail Bonds
Raymond Martinez & Frances Marie Herrera
301 Fair Ave
San Antonio, TX 78223
(210) 736-4656
General Practice Attorneys, Attorneys, Legal Service Plans
Boyd-Veigel Attorneys
3501 Legacy Dr
Plano, TX 75023
(972) 208-4600
Bankruptcy Law Attorneys,  Attorneys,  General Practice Attorneys,  Legal Service Plans
Miller & Bicklein Law Offices
2526 82nd St Ste E
Lubbock, TX 79423
(806) 780-4357
Attorneys,  Labor & Employment Law Attorneys,  Social Security & Disability Law Attorneys,  Personal
Gregory Sam
2742 82nd St
Lubbock, TX 79423
(806) 687-4357
Attorneys,  Bankruptcy Services,  Foreclosure Services,  Business Bankruptcy Law Attorneys,  Bankrup
Steven M. Lee, PC
6001 Gulf Fwy Ste A102
Houston, TX 77023
(713) 921-4171
Personal Injury Law Attorneys, Insurance Attorneys, Attorneys
Steve Lee
5823 Gulf Fwy
Houston, TX 77023
(713) 921-4171
Insurance Attorneys,  Attorneys,  Personal Injury Law Attorneys,  General Practice Attorneys,  Accid
Gostecnik Dora Ann
3811 Avenue B
Brookshire, TX 77423
(281) 934-4141
General Practice Attorneys, Attorneys, Legal Service Plans
Barrett & Associates, PLLC
317 N Main Ave
Denver City, TX 79323
(806) 592-3536
Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US