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 Zip Code 90804

Advantages and Disadvantages of a Limited Liability Company (LLC) in Zip Code 90804


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 CA 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 CA 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 Zip Code 90804
Overett Group
5150 Pacific Coast Highway
Long Beach, CA 90804
(562) 986-9864
Accident & Property Damage Attorneys, Personal Injury Law Attorneys, Attorneys
Brand & Burris PC
3836 E Anaheim St
Long Beach, CA 90804
(562) 438-7500
Bankruptcy Law Attorneys
Coast Legal Document Services
728 Obispo Ave., Suite 3
Long Beach, CA 90804
(562) 856-3800
Estate Planning, Probate, & Living Trusts, Paralegals, Eviction Service, Divorce Assistance
Robert Finn
5150 E Pacific Coast Hwy Suite 470
Long Beach, CA 90804
(562) 901-3388
DUI & DWI Attorneys,  Personal Injury Law Attorneys,  Criminal Law Attorneys,  Attorneys
Boyer Tadros Law, Professional Corporation
5150 E Pacific Coast Hwy Suite 200
Long Beach, CA 90804
(562) 346-3276
Bankruptcy Law Attorneys,  Business Litigation Attorneys,  Civil Litigation & Trial Law Attorneys,  
Claveran Law Firm
5199 E Pacific Coast Hwy Ste 508
Long Beach, CA 90804
(562) 494-2828
Bankruptcy Law Attorneys, Attorneys, Elder Law Attorneys
Jacob,Goldstein,and Associates
1630 stanton place
Long Beach, CA 90804
(562) 340-2798
Collection Law Attorneys, Billing Service, Financial Services
Greathouse Jeffrey
3454 E Anaheim St
Long Beach, CA 90804
(562) 498-1545
General Practice Attorneys, Attorneys
Todd B Becker
3750 E Anaheim St
Long Beach, CA 90804
(562) 495-1500
Personal Injury Law Attorneys, Attorneys, Bankruptcy Law Attorneys
Gonzales & Jackson
5150 E Pacific Coast Hwy
Long Beach, CA 90804
(562) 303-1222
Bankruptcy Law Attorneys, Legal Service Plans, Attorneys
In PRO Per Document Preparation Services
5199 E Pacific Coast Hwy Ste 330N
Long Beach, CA 90804
(562) 206-0886
Paralegals
Paralegal Services
5199 E Pacific Coast Hwy Ste 210
Long Beach, CA 90804
(562) 263-0242
Paralegals
Armstrong Robert
4500 E Pacific Coast Hwy Ste 400
Long Beach, CA 90804
(562) 597-0029
Insurance Attorneys, Attorneys, Legal Service Plans
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US