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 95818

Advantages and Disadvantages of a Limited Liability Company (LLC) in Zip Code 95818


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 95818
Paralegals Unlimited
502 U St
Sacramento, CA 95818
(916) 444-7400
Paralegals
Lehrman Douglas
2110 21st St
Sacramento, CA 95818
(916) 456-5920
Attorneys
Nadrich & Cohen, LLP
2572 21st Street
Sacramento, CA 95818
(916) 443-5486
Attorneys Referral & Information Service, Attorneys
Social Security Appeals-Disability Attorney-A Richard Shore
1341 Burnett Way
Sacramento, CA 95818
(916) 456-4900
Shore & Duarte
1341 Burnett Way
Sacramento, CA 95818
(913) 386-4900
Social Security & Disability Law Attorneys, Attorneys, Social Security Services
Isabell W. Flores
2572 21st Street
Sacramento, CA 95818
(916) 779-4806
Attorneys,  Criminal Law Attorneys,  DUI & DWI Attorneys,  Personal Injury Law Attorneys,  General P
Bethania Maria Immigration Law
2018 9th St
Sacramento, CA 95818
(916) 441-4648
Attorneys, Immigration & Naturalization Consultants, Immigration Law Attorneys, Legal Service Plans
Noble Michael M
2017 5th St
Sacramento, CA 95818
(916) 442-4412
Bankruptcy Law Attorneys, Attorneys
Kowalewski Mark
2400 22nd St # 110
Sacramento, CA 95818
(916) 442-4243
Attorneys, Legal Service Plans
Land Park Income Tax Service
2732 Marty Way
Sacramento, CA 95818
(916) 444-3090
Tax Return Preparation-Business, Estate Planning, Probate, & Living Trusts, Probate Law Attorneys, W
Masuda Donald
2214 21st St
Sacramento, CA 95818
(916) 456-3030
Personal Injury Law Attorneys, Legal Service Plans, Attorneys
United Attorneys' Services
3053 Freeport Blvd Ste 289
Sacramento, CA 95818
(916) 457-3000
Attorneys Support & Service Bureaus, Attorneys, General Practice Attorneys
Avila Hernandez LLP
P.O. Box 188115
Sacramento, CA 95818
(916) 665-2155
Immigration Law Attorneys
Legal Support For Attorneys
2855 Freeport Blvd
Sacramento, CA 95818
(916) 441-1266
Attorneys,  Bankruptcy Services,  Bankruptcy Law Attorneys,  Attorneys Referral & Information Servic
Dankman Linda
2601 24th St
Sacramento, CA 95818
(916) 442-1155
Attorneys,  Legal Service Plans,  Probate Law Attorneys,  Personal Injury Law Attorneys,  Accident &
Gillis Eileen
2414 16th St
Sacramento, CA 95818
(916) 325-1080
Family Law Attorneys, Attorneys, General Practice Attorneys, Legal Service Plans
Waltz Law Firm
2022 28th St
Sacramento, CA 95818
(916) 454-0904
General Practice Attorneys, Attorneys, Legal Service Plans
Xiao Daphine Z
2414 16th St
Sacramento, CA 95818
(916) 453-0356
General Practice Attorneys, Attorneys, Family Law Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US