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 Tucson, AZ

Benefits of a Limited Liability Company (LLC) in Tucson, 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 Tucson, AZ
    Goldberg & Osborne - East Tucson
    9630 E 22nd St # 130
    Tucson, AZ 85748
    (520) 298-9962
    Personal Injury Law Attorneys, Attorneys, Civil Litigation & Trial Law Attorneys
    Resnick Mark R
    100 N Stone Ave # 508
    Tucson, AZ 85701
    (520) 903-9938
    Attorneys, General Practice Attorneys, Legal Service Plans
    Davis Kathie
    4300 E Whitman St
    Tucson, AZ 85711
    (520) 795-9935
    Paralegals, Attorneys
    Khalidi Thabet
    116 W Cushing St
    Tucson, AZ 85701
    (520) 629-9909
    Attorneys, General Practice Attorneys
    Bloom Michael J
    100 N Stone Ave # 701
    Tucson, AZ 85701
    (520) 882-9904
    Attorneys, General Practice Attorneys
    Divorce Packet Processing
    6050 N Oracle Rd Ste F
    Tucson, AZ 85704
    (520) 544-9888
    Arbitration & Mediation Attorneys,  Attorneys,  Arbitration Services,  Divorce Assistance
    Prince Natalie N
    177 N Church Ave # 200
    Tucson, AZ 85701
    (520) 624-9866
    Attorneys, General Practice Attorneys, Legal Service Plans
    Pahl & Associates
    6400 E Tanque Verde Rd Ste 150
    Tucson, AZ 85715
    (866) 624-9832
    Family Law Attorneys, Attorneys
    Asdell William L
    3573 E Sunrise Dr # 133
    Tucson, AZ 85718
    (520) 615-9802
    Attorneys, General Practice Attorneys
    O'Connell Daniel H
    3573 E Sunrise Dr # 133
    Tucson, AZ 85718
    (520) 615-9802
    Attorneys, Legal Service Plans
    Kuhnlein John
    123 S Stone Ave # 3
    Tucson, AZ 85701
    (520) 629-9773
    Attorneys, General Practice Attorneys, Legal Service Plans
    Karnas, David - Bellovin & Karnas Pc
    131 E Broadway Blvd
    Tucson, AZ 85701
    (520) 571-9700
    Legal Service Plans,  Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Business Law Attorneys,
    Hastings & Hastings PC
    7400 N Oracle Rd
    Tucson, AZ 85704
    (520) 327-9700
    General Practice Attorneys, Attorneys, Legal Service Plans
    Bogutz & Gordon Pc
    3503 N Campbell Ave
    Tucson, AZ 85719
    (520) 321-9700
    Estate Planning Attorneys, Attorneys, Legal Service Plans
    Krone, Russell E Thompson Krone P
    6303 E Tanque Verde Rd Ste 210
    Tucson, AZ 85715
    (520) 884-9694
    Attorneys, General Practice Attorneys, Legal Service Plans
    Bayham Thomas M
    310 S Williams Blvd # 185
    Tucson, AZ 85711
    (520) 790-9663
    Attorneys, General Practice Attorneys
    Botwin Michael D
    3507 N Campbell Ave # 111
    Tucson, AZ 85719
    (520) 603-9657
    Attorneys
    Post Eric
    3256 E Speedway Blvd
    Tucson, AZ 85716
    (520) 207-9601
    Attorneys, Legal Service Plans
    Gottesman, Michael H - Gottesman-Law Offices
    4400 E Broadway Blvd # 600
    Tucson, AZ 85711
    (520) 529-9558
    Attorneys,  Legal Service Plans,  Family Law Attorneys,  Divorce Attorneys,  Personal Injury Law Att
    Nancy M Robinett LAW Offices
    325 W Franklin St # 107
    Tucson, AZ 85701
    (520) 670-9500
    Attorneys, General Practice Attorneys
    Southwest Wills & Trusts
    3476 W Green Ridge Dr
    Tucson, AZ 85741
    (520) 219-9462
    Paralegals
    Beaman James R
    1670 N Country Club Rd
    Tucson, AZ 85716
    (520) 327-9456
    Attorneys, General Practice Attorneys
    Kennedy Miriam R
    665 N Swan Rd
    Tucson, AZ 85711
    (520) 322-9427
    General Practice Attorneys, Attorneys, Legal Service Plans
    Baade John A
    325 W Franklin St
    Tucson, AZ 85701
    (520) 624-9401
    Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US