12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
 
FINANCIAL & MARITAL

Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
 

Advantages and Disadvantages of a Limited Liability Company (LLC) in Gilbert, AZ

Advantages and Disadvantages of a Limited Liability Company (LLC) in Gilbert, AZ


Grit is often the single-most predictor of success.
 
- Jonah Lehrer


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 AZ 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 AZ 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 Gilbert, AZ
Chris Winchell Atty
207 N. Gilbert Road, Suite 001
Gilbert, AZ 85234
(480) 917-9977
Mon-Fri 7:30am-6pm, Sat 9am-6pm, Sun Closed
Denise Tomaiko Law Offices
1425 West Elliot Rd #201
Gilbert, AZ 85233
(480) 656-9765
Attorneys, Family Law Attorneys
Fong Terry J
428 S Gilbert Rd Ste 116
Gilbert, AZ 85296
(480) 307-9187
Attorneys, Accident & Property Damage Attorneys, Corporation & Partnership Law Attorneys, Personal I
RJ Hurwitz
3303 E Baseline Rd Suite 113
Gilbert, AZ 85234
(480) 535-8988
Accident & Property Damage Attorneys, Personal Injury Law Attorneys, Attorneys
Reesing & Turner PA
1425 W Elliot Rd
Gilbert, AZ 85233
(480) 838-8686
Attorneys, Legal Service Plans
Turner Richmond K
1425 W Elliot Rd Ste 201
Gilbert, AZ 85233
(480) 838-8686
Attorneys
Farrington Hardy, PLC
1543 W Elliot Rd
Gilbert, AZ 85233
(480) 422-8555
Bankruptcy Law Attorneys,  Business Bankruptcy Law Attorneys,  Child Custody Attorneys,  Divorce Att
Zachary Law Group
625 N Gilbert Rd Ste 207
Gilbert, AZ 85234
(480) 535-8252
Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Labor & Employment Law Attorneys,  Busin
Andrew E. Moore Law Firm, P.C.
207 N. Gilbert Road, Ste 1
Gilbert, AZ 85234
(480) 699-7454
Family Law Attorneys, Divorce Attorneys, Land Planning Services, Zoning Consultants, Real Estate Att
Christensen REX Atty
3810 E Remington Dr
Gilbert, AZ 85297
(480) 792-6651
General Practice Attorneys, Attorneys
Christensen, Rex Rex A Christensen P
3317 S Higley Rd Ste 114
Gilbert, AZ 85297
(480) 792-6651
Attorneys
Naas Lindsay
21633 S 156th St
Gilbert, AZ 85298
(480) 620-6409
Attorneys
Slater Lawrence
16444 E Pecos Rd
Gilbert, AZ 85295
(480) 835-6000
Attorneys, General Practice Attorneys
Terry J Fong P
428 S Gilbert Rd Ste 116
Gilbert, AZ 85296
(480) 459-5892
Attorneys,  Accident & Property Damage Attorneys,  Corporation & Partnership Law Attorneys,  Persona
Reesing Law Office
1425 W Elliot Rd Suite 201
Gilbert, AZ 85233
(480) 222-5680
Attorneys, Family Law Attorneys
Platt & Westby, P.C.
1425 W Elliot Rd Ste 201
Gilbert, AZ 85233
(480) 969-5070
Probate Law Attorneys, Attorneys, Wills, Trusts & Estate Planning Attorneys
Buck Adam
1425 S Higley Rd Ste 106
Gilbert, AZ 85296
(480) 603-4988
Attorneys
Wylde Summers P
3303 E Baseline Rd Ste. 109
Gilbert, AZ 85234
(928) 377-4670
John Bednarz, P.C.
3651 E Baseline Rd Suite E-130
Gilbert, AZ 85234
(480) 420-4108
Attorneys, Divorce Attorneys, Child Custody Attorneys
White Kristin
3336 E Chandler Heights Rd Ste 1
Gilbert, AZ 85298
(480) 855-4066
Attorneys, General Practice Attorneys, Legal Service Plans
White Kristin G
3336 E Chandler Heights Rd # 117
Gilbert, AZ 85298
(480) 855-4066
General Practice Attorneys, Attorneys, Legal Service Plans
Discount Doc Prep
2684 E Stottler Dr
Gilbert, AZ 85296
(480) 258-3558
Family Law Attorneys,  Divorce Assistance,  Legal Forms,  Bankruptcy Law Attorneys,  Legal Document
Amack Law Office
1425 West Elliot Rd, Ste 201
Gilbert, AZ 85233
(480) 359-3226
Child Custody Attorneys, Divorce Attorneys, DUI & DWI Attorneys
Stephen F. Banta, P
3497 E Crescent Way
Gilbert, AZ 85298
(480) 707-2835
Corporation & Partnership Law Attorneys,  Attorneys,  Legal Service Plans,  Bankruptcy Law Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US