Find More Articles
12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents™
 
ESTATE PLANNING
Last Will and Testament
Living Trust
Living Will for Healthcare
 
FINANCIAL & MARITAL
Power of Attorney
Premarital Agreement
Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
BUSINESS
General Partnership
Consulting Agreement
Employee Documents coming soon!
Incorporation coming soon!
Limited Liability Company coming soon!
 

Benefits of a Limited Liability Company (LLC) in Bellamy, AL

Benefits of a Limited Liability Company (LLC) in Bellamy, AL


Your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma - which is living with the results of other people's thinking. Don't let the noise of other's opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.
 
- Steve Jobs


A limited liability company (LLC) is similar to a Partnership but has the liability protection for the owners that a corporation offers without the formalities, paperwork and fees. All new LLCs must file articles of organization with their secretary of state's office.

You should draft an operating agreement for your LLC that spells out the details of the business arrangement, including members' percentage ownership, roles, rights and responsibilities.

The LLC structure is a good way to "wall off" your personal assets from your company's liabilities, offering protection for your personal assets in the event of a liability or judgment against your business.

A limited liability company (LLC) also has certain tax advantages. The business itself is not responsible for taxes on its profits. Instead, the LLC's owners, known as "members," report their share of business profit and loss on their personal tax returns, similar to tax reporting for a General Partnership. This is known as "pass-through" taxation.


There are many benefits to an LLC structure.

  • Protected assets: LLCs provide limited liability protection to their owners (members), who are typically not personally responsible for the business debts and liabilities of the LLC. Creditors cannot pursue the personal assets (house, savings accounts, etc.) of the owners to pay business debts. Conversely, in a sole proprietorship or General Partnership, owners and the business are legally considered the same—leaving personal assets vulnerable.
  • Pass-through taxation: LLCs typically do not pay taxes at the business level. Any business income or loss is "passed-through" to owners and reported on their personal income tax returns. Any tax due is paid at the individual level.
  • Heightened credibility: Forming an LLC may help a new business establish credibility with potential customers, employees, vendors and partners because they see you have made a formal commitment to your business.
  • Limited compliance requirements: LLCs face fewer state-imposed annual requirements and ongoing formalities than S corporations and C corporations.
  • Flexible management structure: LLCs are free to establish any organizational structure agreed upon by the company owners. LLCs can be managed by the owners (members) or by managers, unlike corporations which have a board of directors who oversee the major business decisions of the company and officers who manage the day-to-day affairs.
  • Few restrictions: There are few restrictions on who can be an LLC owner or how many owners an LLC may have (unlike S corporations).


    • Potential LLC Disadvantages

    LLCs may have some potential disadvantages, including:

  • Formation and ongoing expenses: To form an LLC, Articles of Organization must be filed with the state and the applicable state filing fees paid. Many states impose ongoing fees, such as annual report and/or franchise tax fees. While these fees often are not very expensive for small businesses, LLC formation is more expensive than that of a sole proprietorship or General Partnership, both of which are not required to file formation documents with the state. A few states, such as New York and Arizona, also require LLC owners to publish notice of the LLC formation in local newspapers for several weeks. This can be costly.
  • Transferable ownership: Ownership in an LLC is often harder to transfer than with a corporation. With corporations, shares of stock can be sold to increase ownership. Typically with LLCs, all owners must approve adding new owners or altering the ownership percentages of existing owners.
  • Less precedent: Because the LLC is a newer type of business structure, there is not as much case law or legal precedent for LLCs as there is for corporations.

    •  
    Personalize & Print a Free AL 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 AL 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 Bellamy, AL
    Bond Botes Reese & Shinn PC
    1906 Delaware Ave
    Jasper, AL 35501
    (205) 221-9998
    Social Security & Disability Law Attorneys,  Attorneys,  Bankruptcy Law Attorneys,  Legal Service Pl
    Brooks Melody S
    1215 Noble St
    Anniston, AL 36201
    (256) 240-9994
    Attorneys, General Practice Attorneys
    Alaplan Legal Services Company Inc
    1107 23rd Ave
    Tuscaloosa, AL 35401
    (205) 343-9991
    Attorneys, Legal Service Plans
    Johnston Sharon A
    509 Madison St SE
    Huntsville, AL 35801
    (256) 512-9990
    Family Law Attorneys, Attorneys
    Raby, Steve
    116 Jefferson St S
    Huntsville, AL 35801
    (256) 564-9967
    Attorneys
    Melissa Skipper
    107 Jefferson St S
    Huntsville, AL 35801
    (256) 512-9949
    Attorneys, Criminal Law Attorneys
    Melissa Skipper
    100 Jefferson St S # 200
    Huntsville, AL 35801
    (256) 512-9949
    Attorneys, Criminal Law Attorneys
    Cross, Silas G Jr
    907 17th Ave
    Tuscaloosa, AL 35401
    (205) 391-9932
    Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
    Batiste Dorothea
    300 Clinton Ave E
    Huntsville, AL 35801
    (256) 783-9930
    Immigration Law Attorneys, Attorneys, Family Law Attorneys
    Scott Young
    2341 Whitesburg Dr S
    Huntsville, AL 35801
    (256) 512-9922
    Attorneys
    Peter L Lowe Jr Atty
    307 Franklin St SE
    Huntsville, AL 35801
    (256) 539-9900
    General Practice Attorneys, Attorneys
    Bond Botes Sykstus Tanner & Ezzell PC
    225 Pratt Ave NE
    Huntsville, AL 35801
    (256) 539-9899
    Social Security & Disability Law Attorneys,  Attorneys,  Social Security Services,  Bankruptcy Law A
    Seagle Deborah S
    533 S Oates St
    Dothan, AL 36301
    (334) 793-9882
    Attorneys, Wills, Trusts & Estate Planning Attorneys, Legal Service Plans
    Bowman Law Firm
    200 Randolph Ave SE
    Huntsville, AL 35801
    (256) 539-9850
    Tax Attorneys, Attorneys, Criminal Law Attorneys, Family Law Attorneys, Divorce Attorneys, Legal Ser
    Stuck Benjamin J Law Offices
    1905 7th St
    Tuscaloosa, AL 35401
    (205) 345-9834
    General Practice Attorneys, Attorneys
    Allen Insurance Agency
    302 1st Ave SE
    Decatur, AL 35601
    (256) 308-9800
    Attorneys, Insurance
    Henslee Robertson Strawn & Sullivan LLC
    754 Chestnut St
    Gadsden, AL 35901
    (256) 543-9790
    Corporation & Partnership Law Attorneys,  Attorneys,  Labor & Employment Law Attorneys,  Tax Attorne
    Robertson John T IV Atty
    754 Chestnut St
    Gadsden, AL 35901
    (256) 543-9790
    Attorneys,  Labor & Employment Law Attorneys,  Accident & Property Damage Attorneys,  Corporation &
    Maples & Ray
    401 Holmes Ave NE
    Huntsville, AL 35801
    (256) 489-9779
    Attorneys, Legal Service Plans
    Miles & Welch LLC
    309 Broad St
    Gadsden, AL 35901
    (256) 543-9777
    Personal Injury Law Attorneys, Attorneys
    Phillip Miles Law Office
    309 Broad St
    Gadsden, AL 35901
    (256) 543-9777
    Personal Injury Law Attorneys, Attorneys, General Practice Attorneys
    Guster Takisha
    1408 5th Ave SE # 1
    Decatur, AL 35601
    (256) 353-9751
    Attorneys, Legal Service Plans
    Waldrip Law Firm
    406 Duncan St
    Gadsden, AL 35901
    (256) 546-9666
    General Practice Attorneys, Attorneys, Legal Service Plans
    Gordan Duane F
    1330 Washington St NW
    Huntsville, AL 35801
    (256) 535-9639
    Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US