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 Millerville, AL

Benefits of a Limited Liability Company (LLC) in Millerville, 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 Millerville, AL
    Sherry Dobbins PC
    100 Alabama Ave SW
    Fort Payne, AL 35967
    (256) 845-9985
    Divorce Attorneys, Family Law Attorneys, Attorneys
    Huffstutler, Susan C
    1507 Broad St
    Phenix City, AL 36867
    (334) 298-9897
    Attorneys, Family Law Attorneys
    Gillis Terry Attorney
    204 4th St SW
    Fort Payne, AL 35967
    (256) 845-9800
    Wills, Trusts & Estate Planning Attorneys, Attorneys, Real Estate Attorneys, Legal Service Plans
    Loggins Timothy B
    100 N College St
    Opp, AL 36467
    (334) 493-9761
    Elder Law Attorneys, Attorneys, Legal Service Plans
    Grimes Dana
    505 Alabama Ave SW
    Fort Payne, AL 35967
    (256) 997-9729
    Criminal Law Attorneys,  Attorneys,  Personal Injury Law Attorneys,  Family Law Attorneys,  Divorce
    Blackstock Jr Thomas A
    501 N Main St
    Opp, AL 36467
    (334) 493-9716
    Attorneys
    Baker, David S - Laird Baker & Blackstock
    501 N Main St
    Opp, AL 36467
    (334) 493-9716
    Accident & Property Damage Attorneys,  Attorneys,  Family Law Attorneys,  General Practice Attorneys
    Powell James C
    23000 Chicago St
    Robertsdale, AL 36567
    (251) 947-9494
    General Practice Attorneys, Attorneys, Legal Service Plans
    Cooper Connie
    1015 13th St
    Phenix City, AL 36867
    (334) 297-9442
    Attorneys, Criminal Law Attorneys, Family Law Attorneys
    Jones Law Firm PC
    516 14th St
    Phenix City, AL 36867
    (334) 297-9042
    Attorneys, General Practice Attorneys, Legal Service Plans
    Jones, David
    516 14th St
    Phenix City, AL 36867
    (334) 297-9042
    Attorneys
    Hutcheson Terry G
    108 Alabama Ave SW
    Fort Payne, AL 35967
    (256) 845-8884
    Attorneys, General Practice Attorneys
    Jeff McCurdy
    105 Grand Ave SW
    Fort Payne, AL 35967
    (256) 996-8701
    Attorneys
    Thomas Melissa B
    1321 Broad St
    Phenix City, AL 36867
    (334) 297-8300
    Family Law Attorneys,  Attorneys,  Adoption Law Attorneys,  Child Custody Attorneys,  Divorce Attorn
    Boothe Bart M
    808 US Highway 84 E
    Opp, AL 36467
    (334) 493-8100
    General Practice Attorneys, Attorneys
    Crabtree Jeffrey W
    22666 State Highway 59 S
    Robertsdale, AL 36567
    (251) 947-7751
    DUI & DWI Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Legal Service Plan
    Sweet James H
    22666 State Highway 59 S
    Robertsdale, AL 36567
    (251) 947-7751
    DUI & DWI Attorneys, Attorneys, Criminal Law Attorneys, Family Law Attorneys, Legal Service Plans, B
    Clark David R
    902 S Memorial Dr
    Prattville, AL 36067
    (334) 361-7750
    Attorneys,  Criminal Law Attorneys,  Business Bankruptcy Law Attorneys,  Bankruptcy Law Attorneys
    Harp & Callier LLP
    1604 Broad St # F
    Phenix City, AL 36867
    (334) 291-7741
    Accident & Property Damage Attorneys, Attorneys, General Practice Attorneys
    Thomas F Worthy
    1321 Broad St # C
    Phenix City, AL 36867
    (334) 291-7654
    Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
    Gibbons Cristel N
    143 1st St
    Prattville, AL 36067
    (334) 361-7240
    General Practice Attorneys, Attorneys, Legal Service Plans
    Joanna C Parker The
    1507 Broad St
    Phenix City, AL 36867
    (334) 298-7062
    Employee Benefits & Worker Compensation Attorneys,  Attorneys,  Family Law Attorneys,  Labor & Emplo
    Johnson Mitzi
    22881 State Highway 59 S
    Robertsdale, AL 36567
    (251) 989-7000
    DUI & DWI Attorneys, Attorneys, Criminal Law Attorneys, Family Law Attorneys, Legal Service Plans
    Green Matthew
    302 Alabama Ave SW
    Fort Payne, AL 35967
    (256) 844-6995
    Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US