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 Bentonville, AR

Benefits of a Limited Liability Company (LLC) in Bentonville, AR


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 AR 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 AR 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 Bentonville, AR
    Christine Horwart P A, Attorney and Counsellor at Law
    PO Box 1382
    Bentonville, AR 72712
    (479) 202-9800
    Attorneys,  Personal Injury Law Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Divorce
    Garrett Ham, PLC
    609 SW 8th St, Suite 600
    Bentonville, AR 72712
    (479) 553-9501
    Aviation Consultants, Real Estate Attorneys, Wills, Trusts & Estate Planning Attorneys, Attorneys, B
    Woods Snively Atwell Law Firm
    1006 NW 11th St
    Bentonville, AR 72712
    (479) 464-9155
    General Practice Attorneys,  Attorneys,  Family Law Attorneys,  Legal Service Plans
    Cripps Law Firm
    101 NE 2nd St
    Bentonville, AR 72712
    (479) 273-9026
    General Practice Attorneys, Attorneys, Legal Service Plans
    Coffelt Burrow & Sawyer Attys
    101 NE 2nd St
    Bentonville, AR 72712
    (479) 273-9026
    Attorneys, General Practice Attorneys
    Gibby Darrell
    903 SE 22nd Street, Suite 3
    Bentonville, AR 72712
    (479) 271-8898
    Attorneys, General Practice Attorneys
    J Robin Pace PA
    2106 S Walton Blvd
    Bentonville, AR 72712
    (479) 274-8698
    Bankruptcy Law Attorneys,  Divorce Attorneys,  Attorneys,  Family Law Attorneys
    Burke Law Firm PA
    206 SW 8th St # 206
    Bentonville, AR 72712
    (479) 876-8618
    Attorneys, General Practice Attorneys, Legal Service Plans
    Burke Brian T
    206 SW 8th St # 206
    Bentonville, AR 72712
    (479) 876-8618
    General Practice Attorneys, Attorneys, Legal Service Plans
    Smith Thomas E
    200 E Central Ave
    Bentonville, AR 72712
    (479) 273-7062
    Divorce Attorneys,  Attorneys,  Family Law Attorneys,  Divorce Assistance,  Legal Service Plans,  Cr
    Blaine Jackson
    105 SE 14th St
    Bentonville, AR 72712
    (479) 271-6954
    Elder Law Attorneys,  Estate Planning Attorneys,  Probate Law Attorneys,  Attorneys
    Jackson Blaine
    201 SW E St
    Bentonville, AR 72712
    (479) 271-6954
    Attorneys
    Hoeller Law Firm
    1500 NE Benjamin Grn
    Bentonville, AR 72712
    (479) 271-6812
    Attorneys, General Practice Attorneys, Legal Service Plans
    McKinney Rogers
    813 SW Raintree
    Bentonville, AR 72712
    (479) 657-6737
    Attorneys, Legal Service Plans
    Bentonville City Attorney
    117 W Central Ave
    Bentonville, AR 72712
    (479) 271-5956
    Attorneys, Justice Courts, Government Offices
    Thomas Dennis K
    3201 SW Regency Pkwy # 1
    Bentonville, AR 72712
    (479) 273-5901
    Attorneys
    Elder Whatley & Elrod P
    101 SE J St
    Bentonville, AR 72712
    (479) 268-5678
    General Practice Attorneys, Attorneys, Wills, Trusts & Estate Planning Attorneys
    Tarvin Law Firm P
    201 NE 3rd St
    Bentonville, AR 72712
    (479) 273-5336
    Attorneys, General Practice Attorneys, Legal Service Plans
    Drake Mark D. PA
    2800 SW 14th St
    Bentonville, AR 72712
    (479) 464-4693
    Attorneys,  Probate Law Attorneys,  Bankruptcy Services,  Financial Services,  Family Law Attorneys,
    Adcock Thomas Tina
    2800 SW 14th St # 12
    Bentonville, AR 72712
    (479) 464-4693
    Attorneys
    Tarvin Ed Attorney
    201 NW 3rd St
    Bentonville, AR 72712
    (479) 273-3422
    General Practice Attorneys, Attorneys
    Clements Curtis D
    216 N Main St # 4
    Bentonville, AR 72712
    (479) 273-3377
    Attorneys
    Hood Rickard W
    216 N Main St
    Bentonville, AR 72712
    (479) 273-3377
    Attorneys
    Hood & Stacy P.A.
    216 N Main St
    Bentonville, AR 72712
    (479) 273-3377
    Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US