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 Peoria, AZ

Benefits of a Limited Liability Company (LLC) in Peoria, AZ


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 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 Peoria, AZ
    steve tutnick law office
    7146 west emile zola avenue
    peoria, AZ 85381
    (623) 825-9686
    Estate Planning Attorneys, Estate Planning, Probate, & Living Trusts, Attorneys
    Sam Igwe Law Office
    20470 N Lake Pleasant Rd Ste 107
    Peoria, AZ 85382
    (623) 444-8398
    Personal Injury Law Attorneys, Attorneys, General Practice Attorneys
    Stewart Scott
    20470 N Lake Pleasant Rd
    Peoria, AZ 85382
    (623) 561-8200
    Family Law Attorneys, Attorneys, Legal Service Plans
    Nancy A Golden & Assoc LLP
    12476 W Running Deer Trl
    Peoria, AZ 85383
    (623) 594-7848
    Attorneys
    Smith Farhart & Hornstein
    16155 N 83rd Ave
    Peoria, AZ 85382
    (623) 344-7100
    Attorneys, Legal Service Plans
    Legal Type Documents
    8282 W Cactus Rd Ste 140
    Peoria, AZ 85381
    (623) 878-6755
    Paralegals
    Katherine Kraus, PLLC
    9059 W Lake Pleasant Pkwy Ste C300
    Peoria, AZ 85382
    (623) 566-4500
    Attorneys, Family Law Attorneys, Divorce Attorneys
    Attorney Practice Solution
    11908 N 79th Ave
    Peoria, AZ 85345
    (623) 878-4277
    Attorneys
    Peoria Cap Offices
    8335 W Jefferson St
    Peoria, AZ 85345
    (623) 979-3911
    Attorneys
    TMC Attorney Svc
    24920 N 82nd Ln
    Peoria, AZ 85383
    (623) 825-3879
    Attorneys, General Practice Attorneys
    The Olsen Law Firm
    15396 N 83rd Ave Ste F101
    Peoria, AZ 85381
    (602) 325-3670
    Bankruptcy Law Attorneys, Business Bankruptcy Law Attorneys, Attorneys
    Arizona Bankruptcy Attorney
    15396 N 83rd Ave Ste F101
    Peoria, AZ 85381
    (602) 325-3670
    Bankruptcy Law Attorneys, Business Bankruptcy Law Attorneys, Credit & Debt Counseling
    Raymond A Kenney Law Office
    7229 W Buckskin Trl
    Peoria, AZ 85383
    (623) 234-3536
    General Practice Attorneys, Attorneys
    Katherine Kraus, PLLC
    9059 W Lake Pleasant Pkwy Suite C300
    Peoria, AZ 85382
    (623) 201-3517
    Attorneys,  Domestic Violence Attorneys,  Child Custody Attorneys,  Family Law Attorneys,  Divorce A
    Johnson Stacy
    8877 N 107th Ave # 302 PMB 618
    Peoria, AZ 85345
    (623) 533-3333
    Attorneys
    A-1 American Doc Preparation
    6851 W Cameron Dr
    Peoria, AZ 85345
    (602) 670-2727
    Paralegals
    A-1 AMERICAN DOC PREPARATION
    7558 W Thunderbird Rd P.M.B. #274
    Peoria, AZ 85381
    (602) 670-2727
    Paralegals
    Jennings Strouss & Salmon
    16150 N Arrowhead Fountains Ctr Dr
    Peoria, AZ 85382
    (623) 738-1648
    Attorneys,  Federal Law Attorneys,  Civil Litigation & Trial Law Attorneys,  Business Law Attorneys,
    Jackson White
    7972 W Thunderbird Rd
    Peoria, AZ 85381
    (623) 974-1555
    Labor & Employment Law Attorneys, Legal Service Plans, Attorneys
    Farley Cory
    9401 W Thunderbird Rd Ste 145
    Peoria, AZ 85381
    (623) 776-1500
    Attorneys
    Garrison Law Firm
    7972 W Thunderbird Rd
    Peoria, AZ 85381
    (623) 915-1100
    Attorneys, Criminal Law Attorneys, Social Security & Disability Law Attorneys, Elder Law Attorneys,
    Kevin Garrison Law Offices
    7972 W Thunderbird Rd Ste 107
    Peoria, AZ 85381
    (623) 915-1100
    Attorneys,  Insurance,  Accident & Property Damage Attorneys,  Legal Service Plans
    Sampair & Associates, PC
    8671 W Union Hills Dr Suite 502
    Peoria, AZ 85382
    (623) 218-1000
    Family Law Attorneys,  Attorneys,  Tax Attorneys,  Divorce Attorneys,  Bankruptcy Services,  Bankrup
    Out-of-Court Solutions
    20470 N Lake Pleasant Rd #107
    Peoria, AZ 85382
    (623) 335-0455
    Divorce Attorneys,  Mediation Services,  Divorce Assistance,  Legal Document Assistance
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US