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 Escondido, CA

Benefits of a Limited Liability Company (LLC) in Escondido, 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 Escondido, CA
    Bruno Louis G
    135 W Mission Ave
    Escondido, CA 92025
    (760) 746-9973
    Attorneys, Legal Service Plans
    Kessler Mark
    139 E 3rd Ave # 104
    Escondido, CA 92025
    (760) 739-8647
    General Practice Attorneys, Attorneys, Legal Service Plans
    Cleary Patricia L
    455 S Escondido Blvd
    Escondido, CA 92025
    (760) 410-8634
    Mediation Services,  Divorce Assistance,  Child Custody Attorneys,  Divorce Attorneys,  Family Law A
    Descalso, Judith A
    960 Canterbury Pl Ste 340
    Escondido, CA 92025
    (760) 745-8380
    Attorneys
    O'Connell & Associates
    220 W Grand Ave
    Escondido, CA 92025
    (760) 389-8035
    Attorneys, Business Law Attorneys, Real Estate Attorneys
    Simply Divorce
    330 W Felicita Ave # D1
    Escondido, CA 92025
    (760) 735-8030
    Paralegals
    Skay Jacqueline M
    220 S Broadway
    Escondido, CA 92025
    (760) 239-7747
    Estate Planning Attorneys, Wills, Trusts & Estate Planning Attorneys, Attorneys, Estate Planning, Pr
    Marino & Sahhar APC Law Offices
    311 E Washington Ave
    Escondido, CA 92025
    (760) 741-7643
    General Practice Attorneys, Attorneys, Legal Service Plans
    Skay Jacqueline M
    1423 Westwood Pl
    Escondido, CA 92026
    (760) 745-7576
    Attorneys, Legal Service Plans
    Galyean Talley & Wood
    739 E Pennsylvania Ave
    Escondido, CA 92025
    (760) 747-7500
    Attorneys,  Personal Injury Law Attorneys,  Real Estate Attorneys,  Employee Benefits & Worker Compe
    Wood Robert C
    739 E Pennsylvania Ave
    Escondido, CA 92025
    (760) 747-7500
    Mediation Services,  Attorneys,  Arbitration Services,  Legal Service Plans
    Agostinelli Wendy
    29472 Welk Highland Dr
    Escondido, CA 92026
    (760) 510-6615
    Paralegals
    Moreno & Assoc
    205 W Mission Ave # L
    Escondido, CA 92025
    (760) 203-6369
    Attorneys, Legal Service Plans
    S. Robert Walder
    1175 Via Valle Vis
    Escondido, CA 92029
    (760) 510-5914
    Attorneys, Social Security & Disability Law Attorneys
    Statile Financial Group Inc
    220 W Grand Ave
    Escondido, CA 92025
    (760) 743-5337
    Mediation Services, Attorneys, Arbitration Services
    Larsen Constance J
    345 W 9th Ave Ste 102
    Escondido, CA 92025
    (760) 743-5216
    Estate Planning Attorneys, Attorneys, Legal Service Plans
    Lomeli-Barrio Inc.
    159 S Orange St
    Escondido, CA 92025
    (760) 746-4610
    Immigration Law Attorneys, Immigration & Naturalization Consultants, Attorneys
    Dulin Paul
    254 E Grand Ave
    Escondido, CA 92025
    (760) 745-4529
    General Practice Attorneys, Attorneys
    Doan Law Firm, LLP
    320 E 2nd Ave Ste 108
    Escondido, CA 92025
    (760) 746-4476
    Credit & Debt Counseling,  Debt Adjusters,  Bankruptcy Services,  Bankruptcy Law Attorneys,  Attorne
    Jennett Maniscalco
    144 E Washington Ave
    Escondido, CA 92025
    (760) 796-4030
    Attorneys,  General Practice Attorneys,  Probate Law Attorneys,  Estate Planning Attorneys
    Styers, Jeffery S Jeffery S Styers Attorney
    225 E 3rd Ave
    Escondido, CA 92025
    (858) 278-3880
    Bankruptcy Law Attorneys, Attorneys, Credit & Debt Counseling
    United Hispanics Services
    135 W Mission Ave
    Escondido, CA 92025
    (760) 738-3801
    Immigration Law Attorneys, Immigration & Naturalization Consultants, Attorneys
    Skaja Daniels Lister & Permito LLP
    960 Canterbury Pl # 110
    Escondido, CA 92025
    (760) 781-3464
    Securities & Investment Law Attorneys, Attorneys
    White & Bright LLP
    970 Canterbury Pl
    Escondido, CA 92025
    (760) 747-3200
    Attorneys, Business Law Attorneys, Real Estate Attorneys, Litigation & Tort Attorneys, Estate Planni
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US