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!
 
 

Benefits of a Limited Liability Company (LLC) in Zip Code 92522

Benefits of a Limited Liability Company (LLC) in Zip Code 92522


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 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 92522
    Hegeler Barton H
    4660 La Jolla Village Dr Suite 670
    San Diego, CA 92122
    (858) 597-9975
    Attorneys, Criminal Law Attorneys, Labor & Employment Law Attorneys, Business Law Attorneys, Litigat
    Brown's Legal Documents
    18314 E Brookport St
    Covina, CA 91722
    (626) 343-9658
    Paralegals, Notaries Public
    Seto Fred
    1560 Noriega St
    San Francisco, CA 94122
    (415) 564-9522
    Attorneys
    Espey Law Offices
    1321 20th Ave
    San Francisco, CA 94122
    (415) 759-9364
    Attorneys,  General Practice Attorneys,  Probate Law Attorneys,  Family Law Attorneys,  Wills, Trus
    Legal Document & Signing Ctr
    1271 Story Rd Ste 50
    San Jose, CA 95122
    (408) 288-9336
    Paralegals, Legal Document Assistance
    Besson & Yarbrough Law Offices
    4984 El Camino Real # 110
    Los Altos, CA 94022
    (650) 864-9330
    Attorneys, General Practice Attorneys, Legal Service Plans, Estate Planning Attorneys
    Robertson Family Law
    300 3rd St
    Los Altos, CA 94022
    (650) 917-9244
    Family Law Attorneys, Attorneys, Legal Service Plans
    Fuentes Rueben Bankruptcy Attorney
    4522 Whittier Blvd
    Los Angeles, CA 90022
    (323) 262-9200
    Attorneys
    Deborah C Winter
    220 State St
    Los Altos, CA 94022
    (650) 948-9081
    Business Law Attorneys, Attorneys
    Sidney Sternick Law Offices
    1720 S Main St
    Angels Camp, CA 95222
    (209) 736-9005
    General Practice Attorneys, Legal Service Plans, Attorneys
    Frank Mayo
    4962 El Camino Real
    Los Altos, CA 94022
    (650) 964-8901
    Attorneys
    Jolicoeur Colette
    7305 Morro Rd
    Atascadero, CA 93422
    (805) 461-8600
    Family Law Attorneys, Attorneys, Bankruptcy Services, Legal Service Plans, Divorce Attorneys, Bankru
    Jolicoeur Colette
    7305 Morro Rd Ste 103C
    Atascadero, CA 93422
    (805) 461-8600
    Family Law Attorneys,  Attorneys,  Bankruptcy Services,  Legal Service Plans,  Divorce Attorneys,  B
    Kramer Radin LLP
    280 2nd St # 100
    Los Altos, CA 94022
    (650) 941-8600
    Attorneys,  Legal Service Plans,  Labor & Employment Law Attorneys,  Tax Attorneys,  Business Law At
    Malovos & Konevich
    166 Main St
    Los Altos, CA 94022
    (650) 949-8400
    Attorneys,  Business Law Attorneys,  Real Estate Attorneys,  Estate Planning Attorneys,  Probate Law
    P H Paralegal Svc
    5914 Kantor St
    San Diego, CA 92122
    (310) 822-8326
    Paralegals
    Einstein & Spiegel
    5243 E Beverly Blvd
    Los Angeles, CA 90022
    (323) 685-8191
    General Practice Attorneys, Attorneys, Legal Service Plans
    Sean Norman Nagel, Esq.
    7980 Camino Jonata
    San Diego, CA 92122
    (858) 997-8170
    Bankruptcy Law Attorneys
    Cooke Kobrick & Wu LLP
    166 Main St
    Los Altos, CA 94022
    (650) 917-8045
    Criminal Law Attorneys, Business Law Attorneys, Litigation & Tort Attorneys, Estate Planning Attorne
    Hochberg Bradley Law Offices
    6418 1/2 Whittier Blvd
    Los Angeles, CA 90022
    (323) 722-8007
    General Practice Attorneys, Attorneys, Legal Service Plans
    Le Nhien H & Associates
    1692 Tully Rd
    San Jose, CA 95122
    (408) 528-7924
    Immigration Law Attorneys, Immigration & Naturalization Consultants, Attorneys
    Kusnir J Michael
    4370 La Jolla Village Dr
    San Diego, CA 92122
    (858) 453-7800
    Contract Law Attorneys, Attorneys
    Dennis Sanchez
    5307 E. Beverly Blvd.
    Los Angeles, CA 90022
    (323) 725-7714
    Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Immigration Law Attorneys,  Personal Inj
    A-1 Legal Document Services
    4071 N Valentine Ave Ste 105
    Fresno, CA 93722
    (559) 478-7606
    Paralegals, Legal Document Assistance
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US