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 Elk Grove, CA

Benefits of a Limited Liability Company (LLC) in Elk Grove, 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 Elk Grove, CA
    Vokshori Law Group
    9245 Laguna Springs Dr Suite 200,
    Elk Grove, CA 95758
    (916) 290-9690
    Bankruptcy Law Attorneys
    Rainville Mike
    9089 Elk Grove Blvd # 201
    Elk Grove, CA 95624
    (916) 714-9500
    Real Estate Attorneys, Attorneys
    Hodge Stephen T
    9381 E Stockton Blvd # 200
    Elk Grove, CA 95624
    (916) 525-9455
    Attorneys, Legal Service Plans, Personal Injury Law Attorneys, Legal Clinics
    J Christina Alvarez Aulakh Law
    2390 Maritime Dr # 110
    Elk Grove, CA 95758
    (916) 525-9000
    Attorneys, Family Law Attorneys, Divorce Attorneys, General Practice Attorneys, Legal Service Plans
    Shimoda Law Corp
    9401 E Stockton Blvd Ste 200
    Elk Grove, CA 95624
    (916) 525-8864
    Attorneys,  Labor & Employment Law Attorneys,  Business Law Attorneys,  Personal Injury Law Attorney
    Frieze & Paul Law Office
    3117 Dwight Rd Ste 300
    Elk Grove, CA 95758
    (916) 427-8412
    Attorneys,  Family Law Attorneys,  Labor & Employment Law Attorneys,  Divorce Attorneys,  Business L
    Aames Legal Document Experts
    9116 Elk Grove Blvd # 100
    Elk Grove, CA 95624
    (916) 686-8323
    Divorce Assistance,  Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Paralegals,  Legal Forms
    John M. O'Brien & Associates
    9401 E Stockton Blvd Ste. 225
    Elk Grove, CA 95624
    (916) 714-8200
    Personal Injury Law Attorneys, Attorneys
    Peter Cianchetta
    8830 Elk Grove Blvd
    Elk Grove, CA 95624
    (916) 685-7878
    Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Personal Injury Law Attorneys,  Estate Planni
    Guenard & Bozarth LLP
    8830 Elk Grove Blvd
    Elk Grove, CA 95624
    (916) 714-7672
    Accident & Property Damage Attorneys, Personal Injury Law Attorneys, Attorneys
    Hogan Thomas
    9245 Laguna Springs Dr # 200
    Elk Grove, CA 95758
    (916) 382-7625
    Attorneys,  Family Law Attorneys,  Tax Attorneys,  Divorce Attorneys,  Personal Injury Law Attorneys
    Stephen T Hodge
    9381 E Stockton Blvd St 200
    Elk Grove, CA 95624
    (916) 822-7412
    Attorneys,  Personal Injury Law Attorneys,  Probate Law Attorneys,  Wills, Trusts & Estate Planning
    Avan Law
    9381 E. Stockton Blvd, Ste 114
    Elk Grove, CA 95624
    (916) 896-7292
    Personal Injury Law Attorneys,  Attorneys,  Corporation & Partnership Law Attorneys,  Bankruptcy Law
    Matthew D. Scott
    9245 Laguna Springs Dr # 200
    Elk Grove, CA 95758
    (916) 509-7262
    Insurance Attorneys, Attorneys, Social Security & Disability Law Attorneys, Legal Service Plans
    Linh Nguyen
    9245 Laguna Springs Dr Ste 200
    Elk Grove, CA 95758
    (916) 509-7200
    Attorneys,  Accident & Property Damage Attorneys,  Personal Injury Law Attorneys,  General Practice
    Tonya J Hernandez
    9245 Laguna Springs Dr Suite 200
    Elk Grove, CA 95758
    (916) 509-7174
    Bankruptcy Law Attorneys, Attorneys, Wills, Trusts & Estate Planning Attorneys
    Nguyen Jasmin
    9299 E Stockton Blvd # 30
    Elk Grove, CA 95624
    (916) 714-7100
    General Practice Attorneys, Attorneys, Legal Service Plans
    Faber Michael
    9124 Elk Grove Blvd
    Elk Grove, CA 95624
    (916) 686-7020
    Bankruptcy Law Attorneys,  Attorneys,  Probate Law Attorneys,  Accident & Property Damage Attorneys,
    Clifford Chigbu
    4815 Laguna Park Dr Suite B-3
    Elk Grove, CA 95758
    (916) 230-6381
    General Practice Attorneys,  Family Law Attorneys,  Estate Planning Attorneys,  Attorneys,  Personal
    Matthew B Rosenthal
    9328 Elk Grove Blvd.
    Elk Grove, CA 95624
    (312) 545-6216
    Family Law Attorneys,  Juvenile Law Attorneys,  Adoption Law Attorneys,  Child Custody Attorneys
    Stephen T Hodge
    9381 E Stockton Blvd
    Elk Grove, CA 95624
    (916) 258-5911
    Legal Service Plans,  Insurance Attorneys,  Litigation & Tort Attorneys,  Estate Planning Attorneys,
    Barcellos Chris
    9299 E Stockton Blvd
    Elk Grove, CA 95624
    (916) 686-5909
    Attorneys
    Salinger Law Group
    9132 Elk Grove Blvd
    Elk Grove, CA 95624
    (916) 686-5788
    Automobile Accident Attorneys,  Attorneys,  Criminal Law Attorneys,  Wills, Trusts & Estate Plannin
    Lockwood Randy Law Office
    8788 Elk Grove Blvd
    Elk Grove, CA 95624
    (916) 714-5533
    General Practice Attorneys, Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US