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 Avawam, KY

Advantages and Disadvantages of a Limited Liability Company (LLC) in Avawam, KY


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 KY 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 KY 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 Avawam, KY
Steptoe & Johnson
1010 Monarch St # 250
Lexington, KY 40513
(859) 219-8214
General Practice Attorneys, Attorneys
Cooper, Michael T
1448 Gardiner Ln
Louisville, KY 40213
(502) 459-7555
Accident & Property Damage Attorneys,  Attorneys,  Personal Injury Law Attorneys,  Legal Service Pla
Friedman, Hal D
1448 Gardiner Ln
Louisville, KY 40213
(502) 459-7555
Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
Phillipe W Rich
4824 Preston Hwy
Louisville, KY 40213
(502) 694-6681
Social Security & Disability Law Attorneys,  Personal Injury Law Attorneys,  General Practice Attorn
Franklin & Rapp
1001 Monarch St,Ste 120
Lexington, KY 40513
859-554-1765
Divorce Attorneys,  Attorneys,  Criminal Law Attorneys,  Accident & Property Damage Attorneys,  Pers
Franklin and Rapp
1001 Monarch St
Lexington, KY 40513
859-554-1765
Civil Litigation & Trial Law Attorneys,  Insurance Attorneys,  Legal Service Plans,  DUI & DWI Attor
Sharon K Carney Paralegal Inc
4041 Preston Hwy
Louisville, KY 40213
(502) 366-6040
Paralegals
Franklin and Rapp
1001 Monarch St Ste. 120, Ste 120
Lexington, KY 40513
(513) 370-5726
Personal Injury Law Attorneys,  Criminal Law Attorneys,  Attorneys,  Family Law Attorneys,  Divorce
Amanda Rogers Blincoe
105 E Flaget Av
Coxs Creek, KY 40013
(502) 348-5300
Attorneys,  Family Law Attorneys,  Civil Litigation & Trial Law Attorneys,  Wills, Trusts & Estate
Stout Heuke P S C
200 High Rise Dr # 252
Louisville, KY 40213
(502) 966-3347
Attorneys, General Practice Attorneys
Martin R Douglas
1031 Wellington Way
Lexington, KY 40513
(859) 327-3320
General Practice Attorneys, Attorneys, Legal Service Plans
Gorham Charles W
3151 Beaumont Centre Cir # 200
Lexington, KY 40513
(859) 255-2711
Attorneys, Corporation & Partnership Law Attorneys, Legal Service Plans, Employee Benefits & Worker
G. Christopher Van Bever, P.S.C. Attorney-at-Law
4704 Waterside Court
Lexington, KY 40513
(859) 321-2588
General Practice Attorneys, Business Law Attorneys
Bryan Gowin
1000 Trevilian Way
Louisville, KY 40213
(502) 708-2332
Attorneys, General Practice Attorneys
Adams Hayward & Welsh
4036 Preston Hwy
Louisville, KY 40213
(502) 584-2111
Labor & Employment Law Attorneys, Attorneys, Corporation & Partnership Law Attorneys, Legal Service
Musselwhite Meinhart & Staples
3103 Fern Valley Rd
Louisville, KY 40213
(502) 384-1968
General Practice Attorneys, Attorneys
Wohlander Law Office PSC
1031 Wellington Way
Lexington, KY 40513
(859) 309-1691
General Practice Attorneys, Attorneys, Legal Service Plans
Wiser Hemlepp & Assoc
4245 Palmetto Dr
Lexington, KY 40513
(859) 219-1295
Attorneys
Woolley Billie Sue
3121 Wall St
Lexington, KY 40513
(859) 223-1200
Family Law Attorneys, Attorneys, Legal Service Plans
Troutman Michael W
4740 Firebrook Blvd
Lexington, KY 40513
(859) 253-0991
Corporation & Partnership Law Attorneys, Attorneys, Business Law Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US