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 Davis, CA

Benefits of a Limited Liability Company (LLC) in Davis, 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 Davis, CA
    Stromberg, Jeffrey T
    423 E St
    Davis, CA 95616
    (530) 756-9677
    Attorneys
    Reynolds Law Corp.
    424 2nd St
    Davis, CA 95616
    (530) 601-9504
    Bankruptcy Law Attorneys,  Attorneys,  Bankruptcy Services,  Legal Service Plans
    Moore & Moore
    413 F St
    Davis, CA 95616
    (530) 758-8317
    Attorneys, General Practice Attorneys, Probate Law Attorneys, Business Law Attorneys, Immigration La
    Gambatese, Roger L
    510 4th St
    Davis, CA 95616
    (530) 756-8300
    Attorneys, Probate Law Attorneys
    Christopher Steadman, Attorney
    803 Second Street, Suite D
    Davis, CA 95616
    (530) 574-7239
    Bankruptcy Law Attorneys, Corporation & Partnership Law Attorneys
    Paikoff Lawrence S MD JD
    1756 Picasso Ave Ste F
    Davis, CA 95618
    (707) 273-6629
    Medical Malpractice Attorneys,  Personal Injury Law Attorneys,  Attorneys,  Physicians & Surgeons
    Klein Rodney A
    1756 Picasso Ave
    Davis, CA 95618
    (916) 929-6000
    Insurance Attorneys, Attorneys, Product Liability Law Attorneys
    Pakpour Family Law
    1667 Oak Avenue
    Davis, CA 95616
    (530) 302-5444
    Divorce Attorneys, Family Law Attorneys, Attorneys
    Reynolds Law Corp
    424 2nd St
    Davis, CA 95616
    (530) 297-5030
    Attorneys, Bankruptcy Services, Financial Services
    Lowenthal Law Office
    719 2nd Street, Suite #12
    Davis, CA 95616
    (530) 231-4949
    Attorneys, Real Estate Attorneys, Business Litigation Attorneys, Employment Discrimination Attorneys
    Davis Legal Center
    1260 Lake Boulevard, Suite 244
    Davis, CA 95616
    (530) 554-4844
    Immigration Law Attorneys, Landlord & Tenant Attorneys, Attorneys
    Derraugh M Dawson Law Office
    429 F St # 8
    Davis, CA 95616
    (530) 758-4500
    Family Law Attorneys, Attorneys, General Practice Attorneys
    Ashworth James C
    1109 Kennedy Pl Ste 2
    Davis, CA 95616
    (530) 758-4234
    Attorneys, Legal Service Plans
    Coleman Mary-Alice
    1109 Kennedy Pl Suite 2
    Davis, CA 95616
    (530) 758-4234
    Attorneys, Employment Discrimination Attorneys, Labor & Employment Law Attorneys
    TFLG A Law Corporation
    202 Cousteau Pl Suite 260
    Davis, CA 95618
    (530) 750-3700
    Attorneys,  Landlord & Tenant Attorneys,  Real Estate Management,  Real Estate Attorneys,  Eviction
    Temmerman Law Office
    423 E St
    Davis, CA 95616
    (530) 750-3661
    General Practice Attorneys, Attorneys
    Better Solutions Mediation & Law Services
    430 D Street
    Davis, CA 95616
    (530) 756-2536
    Attorneys, Divorce Attorneys, Mediation Services
    Bair & Bair
    105 E St # 2G
    Davis, CA 95616
    (530) 756-2247
    Attorneys, Family Law Attorneys, Divorce Attorneys, General Practice Attorneys
    JB Dath Law
    508 Second Street suite 212
    Davis, CA 95616
    (530) 574-2076
    Child Custody Attorneys, Divorce Attorneys, Domestic Violence Attorneys, Family Law Attorneys
    Stanley H Wells Law Offices
    510 4th St
    Davis, CA 95616
    (530) 758-1990
    Attorneys, Tax Attorneys, Business Law Attorneys, Real Estate Attorneys, Estate Planning Attorneys,
    Awad-Rashmawi Reem O
    2020 Research Park Dr # 130
    Davis, CA 95618
    (530) 297-1888
    General Practice Attorneys, Attorneys
    Laura Stodden Parker
    510 4th St
    Davis, CA 95616
    (530) 792-1559
    Attorneys, Probate Law Attorneys
    Smith Matthew B
    1667 Oak Ave
    Davis, CA 95616
    (707) 425-1415
    Attorneys
    Mason & Thomas
    2840 5th St
    Davis, CA 95618
    (530) 757-0883
    Accident & Property Damage Attorneys, Personal Injury Law Attorneys, Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US