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 Castella, CA

Benefits of a Limited Liability Company (LLC) in Castella, CA


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 Castella, CA
    Payne & Fears Llp
    801 S Figueroa St # 1150
    Los Angeles, CA 90017
    (213) 439-9911
    Attorneys,  Legal Service Plans,  Business Law Attorneys,  Insurance Attorneys,  Litigation & Tort A
    Alwardil Ban
    1960 Pacific Coast Hwy
    Lomita, CA 90717
    (310) 534-9827
    General Practice Attorneys, Attorneys
    Senator's Retired LAW Firm Llp
    811 W 7th St
    Los Angeles, CA 90017
    (949) 209-9820
    General Practice Attorneys, Attorneys
    Gonzalez Forms Prep
    3263 1st Ave
    Sacramento, CA 95817
    (916) 453-9800
    Immigration Law Attorneys, Immigration & Naturalization Consultants, Attorneys
    Rasmussen Law Offices
    5252 Balboa Ave
    San Diego, CA 92117
    (858) 522-9726
    Attorneys,  Family Law Attorneys,  General Practice Attorneys,  Divorce Assistance,  Legal Service P
    Peterson John S
    707 Wilshire Blvd Ste 5270
    Los Angeles, CA 90017
    (213) 236-9720
    Environment & Natural Resources Law Attorneys, Attorneys
    Immigration Attorney Nabil Chelico
    811 Wilshire Blvd 17th Floor
    Los Angeles, CA 90017
    (213) 234-9592
    Immigration Law Attorneys
    Scroggie, Robin R - Robin R Scroggie Law Office
    865 S Figueroa St Ste 1388
    Los Angeles, CA 90017
    (213) 620-9576
    Malpractice Law Attorneys, Criminal Law Attorneys, Attorneys
    Kirste Robert Landon-
    707 Wilshire Blvd # 4450
    Los Angeles, CA 90017
    (213) 891-9400
    Attorneys, Legal Service Plans
    Bristol Kappy K Law Office
    624 S Grand Ave
    Los Angeles, CA 90017
    (213) 627-9394
    General Practice Attorneys, Attorneys, Legal Service Plans
    Philip Shakhnis
    1055 Wilshire Blvd
    Los Angeles, CA 90017
    (213) 250-9367
    General Practice Attorneys, Attorneys
    Sarin Garish
    1541 Wilshire Blvd Ste 106
    Los Angeles, CA 90017
    (213) 353-9309
    Attorneys,  Immigration Law Attorneys,  Personal Injury Law Attorneys,  Administrative & Governmenta
    Snr Denton
    601 S Figueroa St # 2500
    Los Angeles, CA 90017
    (213) 623-9300
    Attorneys,  Legal Service Plans,  Banking & Mortgage Law Attorneys,  Real Estate Attorneys,  Patent,
    Sonnenschein Nath
    601 S Figueroa St # 2500
    Los Angeles, CA 90017
    (213) 623-9300
    Litigation & Tort Attorneys, Attorneys
    Jacoby & Meyers
    644 S Figueroa St 2nd Floor
    Los Angeles, CA 90017
    (888) 522-9261
    Accident & Property Damage Attorneys,  Personal Injury Law Attorneys,  Wrongful Death Attorneys,  Em
    Bononi Law Group, LLP
    915 Wilshire Blvd Ste 1950
    Los Angeles, CA 90017
    (213) 553-9200
    Corporation & Partnership Law Attorneys, Attorneys, Labor & Employment Law Attorneys, Legal Service
    Knott & Glazier
    707 Wilshire Blvd # 2025
    Los Angeles, CA 90017
    (213) 312-9200
    Civil Litigation & Trial Law Attorneys, Attorneys, Business Law Attorneys
    Curry Christian
    5252 Balboa Ave
    San Diego, CA 92117
    (858) 505-9200
    Attorneys, Legal Service Plans
    Laurence K Brown Law Office
    700 S Flower St
    Los Angeles, CA 90017
    (213) 488-9106
    General Practice Attorneys, Attorneys, Legal Service Plans
    S & S Legal Group
    888 South Figueroa Street, Suite 1030
    Los Angeles, CA 90017
    (213) 817-8888
    Personal Injury Law Attorneys, Attorneys, Attorneys Referral & Information Service
    Sefyan Los Angeles Attorneys
    600 Wilshire Blvd
    Los Angeles, CA 90017
    (323) 373-8833
    Adoption Law Attorneys, Attorneys, Family Law Attorneys
    Tucker Neville M
    865 S Figueroa #2640
    Los Angeles, CA 90017
    (213) 630-8830
    Attorneys, Criminal Law Attorneys, Discrimination & Civil Rights Law Attorneys, Estate Planning Atto
    Scheidemantle David R
    624 S Grand Ave
    Los Angeles, CA 90017
    (213) 629-8715
    General Practice Attorneys, Attorneys
    Downtown Los Angeles Notary
    811 Wilshire Blvd., 17th Fl
    Los Angeles, CA 90017
    (877) 366-8279
    Advertising Agencies, Credit Repair Service, Estate Planning, Probate, & Living Trusts, Legal Docume
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US