Easy Questions  
Free Legal Documents

Advantages and Disadvantages of a Limited Liability Company (LLC) in Charles Town, WV

Advantages and Disadvantages of a Limited Liability Company (LLC) in Charles Town, WV


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 WV 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 WV 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 Charles Town, WV
Thompson Michael D
119 E Liberty St
Charles Town, WV 25414
(304) 728-8808
Attorneys, Legal Service Plans
Briel Michael
201 N George St # 101
Charles Town, WV 25414
(304) 724-8222
Attorneys, Real Estate Attorneys, Real Estate Buyer Brokers, General Practice Attorneys
Kane Thomas M
637 Turnberry Dr
Charles Town, WV 25414
(304) 724-7970
Attorneys
Public Defenders Corp
214 W Liberty St
Charles Town, WV 25414
(304) 728-7811
Attorneys, Legal Service Plans
Kratovil & Amore PLLC
211 W Washington St
Charles Town, WV 25414
(304) 728-7718
Attorneys
Kratovil Law Offices P
211 W Washington St
Charles Town, WV 25414
(800) 296-7718
General Practice Attorneys,  Attorneys,  Criminal Law Attorneys,  Legal Service Plans
Godfrey Tanya
211 W Washington St
Charles Town, WV 25414
(304) 728-7718
Attorneys, Business Bankruptcy Law Attorneys, Bankruptcy Law Attorneys
The Bankruptcy Clinic
211 W Washington St
Charles Town, WV 25414
(304) 728-7718
Attorneys, Bankruptcy Law Attorneys, Legal Service Plans
Skinner John C Jr Atty
809 Morison St
Charles Town, WV 25414
(304) 725-7486
Attorneys, Legal Service Plans
Pentony Peter A
202 W Liberty St
Charles Town, WV 25414
(304) 724-7228
Automobile Accident Attorneys, Attorneys
Byrer F Samuel
202 W Liberty St
Charles Town, WV 25414
(304) 724-7228
Attorneys,  General Practice Attorneys,  Legal Service Plans,  Automobile Accident Attorneys
Davis, Laura C - Skinner Law Firm
115 E Washington St
Charles Town, WV 25414
(304) 725-7029
Personal Injury Law Attorneys, Insurance Attorneys, Attorneys
Skinner Jr John C
115 E Washington St
Charles Town, WV 25414
(304) 725-7029
Attorneys
Skinner, Andrew C - Skinner Law Firm
115 E Washington St
Charles Town, WV 25414
(304) 725-7029
Insurance Attorneys,  Attorneys,  Accident & Property Damage Attorneys,  Business Law Attorneys,  Pe
Luxford Steve N
39 W Blakeley Dr
Charles Town, WV 25414
(304) 725-6999
General Practice Attorneys, Attorneys
Lewis Eric CPA
205 W Liberty St
Charles Town, WV 25414
(304) 728-6877
Accountants-Certified Public, Attorneys, General Practice Attorneys, Tax Return Preparation, Tax Ret
Lorenzetti Ralph A
1011 Clark Ct
Charles Town, WV 25414
(304) 725-6263
Attorneys
Bryant Todd
78 Barrel Horse Dr
Charles Town, WV 25414
(304) 724-6141
Attorneys
Dorsey & Kershner Lc Atty
108 W Congress St
Charles Town, WV 25414
(304) 728-6000
Attorneys
Dorsey John K
104 W Congress St
Charles Town, WV 25414
(304) 728-6000
Attorneys, Wills, Trusts & Estate Planning Attorneys, Probate Law Attorneys
Zullo S T
296 Kimberwicke Dr N
Charles Town, WV 25414
(304) 724-5391
Attorneys
Prinz Robin S
201 N George St # 202
Charles Town, WV 25414
(304) 725-5325
Attorneys
Whitebook Barry
448 Southerly Ln
Charles Town, WV 25414
(304) 725-3756
Attorneys
Waugh Brenda
202 N Charles St
Charles Town, WV 25414
(304) 728-3660
Attorneys, General Practice Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US