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 Alberta, AL

Benefits of a Limited Liability Company (LLC) in Alberta, 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 Alberta, AL
    Smith Deborah W
    102 N Cotton St
    Andalusia, AL 36420
    (334) 222-9299
    Attorneys
    Meredith Woods Markham
    1608 3rd Ave N
    Bessemer, AL 35020
    (205) 902-9227
    Family Law Attorneys, Attorneys
    Sylvester Rod
    205 Church St
    Andalusia, AL 36420
    (334) 222-9199
    Attorneys
    Sylvester Rod
    7 E Court Sq
    Andalusia, AL 36420
    (334) 222-9191
    Attorneys
    Lanier Grady
    206 S Three Notch St
    Andalusia, AL 36420
    (334) 222-9189
    Attorneys, Legal Service Plans
    Woodard Allen G
    1213 E Three Notch St
    Andalusia, AL 36420
    (334) 222-9115
    Attorneys, General Practice Attorneys
    Bogan Adrienne W
    1600 5th Ave N
    Bessemer, AL 35020
    (205) 424-8875
    Attorneys,  Business Bankruptcy Law Attorneys,  General Practice Attorneys,  Bankruptcy Law Attorney
    Law Center The For Civil And Criminal Justice
    1600 5th Ave N
    Bessemer, AL 35020
    (205) 424-8875
    Attorneys, General Practice Attorneys
    Johnson Earl V Atty
    29 S Court Sq
    Andalusia, AL 36420
    (334) 222-8443
    Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
    Armstrong Ralph L
    1818 3rd Ave N
    Bessemer, AL 35020
    (205) 424-8255
    Criminal Law Attorneys, Attorneys
    Corey D. Bryan, LC
    119 E Three Notch St
    Andalusia, AL 36420
    (334) 222-8220
    Legal Service Plans, General Practice Attorneys, Attorneys
    Enzor Leland
    208 Dunson St
    Andalusia, AL 36420
    (334) 222-8177
    General Practice Attorneys, Attorneys
    Hardy, Clifford W Jr PC
    1600 3rd Ave N
    Bessemer, AL 35020
    (205) 428-7348
    Attorneys, Legal Service Plans
    Bush Willis W
    25 S Court Sq
    Andalusia, AL 36420
    (334) 222-7193
    Attorneys, Legal Service Plans
    S Scott Allums PC
    506 18th St N
    Bessemer, AL 35020
    (205) 426-7080
    Attorneys,  Personal Injury Law Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Divorce Att
    Tumlin Edward D
    1821 3rd Ave N
    Bessemer, AL 35020
    (205) 424-6868
    Attorneys, Legal Service Plans
    Mc Clelland Richard
    1821 3rd Ave N
    Bessemer, AL 35020
    (205) 277-6780
    Attorneys
    Foster T Kenneth
    300 18th St N
    Bessemer, AL 35020
    (205) 425-6509
    Attorneys, Criminal Law Attorneys, Legal Service Plans
    Short, Pete
    300 18th St N
    Bessemer, AL 35020
    (205) 425-6509
    General Practice Attorneys,  Attorneys,  Family Law Attorneys,  Legal Service Plans
    Jewell, Billy C
    1724 3rd Ave N
    Bessemer, AL 35020
    (205) 424-6300
    Personal Injury Law Attorneys, Attorneys
    Ausman, Joe
    720 18th St N
    Bessemer, AL 35020
    (205) 428-5877
    Attorneys
    Keyes, Jim
    720 18th St N
    Bessemer, AL 35020
    (205) 428-5877
    Attorneys
    Lipscomb And Lipscomb
    210 18th St N
    Bessemer, AL 35020
    (205) 235-5712
    Social Security & Disability Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorne
    Hall Don
    1616 3rd Ave N
    Bessemer, AL 35020
    (205) 425-5711
    Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US