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 Fair Oaks, CA

Benefits of a Limited Liability Company (LLC) in Fair Oaks, 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 Fair Oaks, CA
    Glazebrook Jerry
    9833 Fair Oaks Blvd
    Fair Oaks, CA 95628
    (916) 966-9363
    Attorneys, Family Law Attorneys, Divorce Assistance, Legal Service Plans, General Practice Attorneys
    Susan Dodds
    4095 Bridge Street
    Fair Oaks, CA 95628
    (916) 962-9297
    Bankruptcy Law Attorneys, DUI & DWI Attorneys, Attorneys
    Chubb Heather R
    4332 Illinois Ave
    Fair Oaks, CA 95628
    (916) 966-8829
    Attorneys
    Vorobets Alla A
    4790 Dewey Dr
    Fair Oaks, CA 95628
    (916) 966-8529
    Attorneys Referral & Information Service, Attorneys
    Stassinos Paul
    5150 Sunrise Blvd Ste B6
    Fair Oaks, CA 95628
    (916) 967-8000
    Attorneys
    Ashton & Price
    8243 Greenback Ln
    Fair Oaks, CA 95628
    (916) 786-7787
    Attorneys,  Personal Injury Law Attorneys,  Legal Service Plans,  Product Liability Law Attorneys,  
    Swanson Palmer J
    10351 Fair Oaks Blvd Ste B
    Fair Oaks, CA 95628
    (916) 966-7400
    Insurance Attorneys, Attorneys
    Giguiere Michele L
    5330 Primrose Dr # 231
    Fair Oaks, CA 95628
    (916) 967-6884
    Real Estate Attorneys, Landlord & Tenant Attorneys, Attorneys
    Philip K Fraley Law Offices
    8146 Greenback Ln # 107
    Fair Oaks, CA 95628
    (916) 721-6740
    Family Law Attorneys, Attorneys, General Practice Attorneys
    Bones Law Firm
    4790 Dewey Dr
    Fair Oaks, CA 95628
    (916) 965-6647
    General Practice Attorneys, Attorneys, Legal Service Plans
    Ward & Associates Family Law Attorneys
    10940 Fair Oaks Blvd Ste. 700
    Fair Oaks, CA 95628
    (916) 967-6511
    Attorneys, Criminal Law Attorneys, Family Law Attorneys, Divorce Attorneys, Insurance Attorneys, Est
    Ryan Paul M
    4088 Bridge St
    Fair Oaks, CA 95628
    (916) 965-6298
    Social Security & Disability Law Attorneys,  Attorneys,  General Practice Attorneys,  Labor & Employ
    The Happe Law Group
    9722 Fair Oaks Blvd, Ste D
    Fair Oaks, CA 95628
    (916) 436-5204
    Estate Planning, Probate, & Living Trusts, Civil Litigation & Trial Law Attorneys, Real Estate Attor
    Labor Law Office PC
    5050 Sunrise Blvd # C1
    Fair Oaks, CA 95628
    (916) 965-3100
    Labor & Employment Law Attorneys,  Attorneys,  Personal Injury Law Attorneys,  Corporation & Partner
    Meissner Robert L
    4777 Sunrise Blvd Ste E
    Fair Oaks, CA 95628
    (916) 863-2900
    Accident & Property Damage Attorneys,  Attorneys,  Personal Injury Law Attorneys,  Insurance Attorne
    Stawicki & Maples
    5207 Sunrise Blvd
    Fair Oaks, CA 95628
    (916) 363-2889
    Attorneys,  Wrongful Death Attorneys,  Accident & Property Damage Attorneys,  Personal Injury Law At
    Nivens Norman F
    5150 Sunrise Blvd A-4
    Fair Oaks, CA 95628
    (916) 961-2727
    Attorneys, Legal Service Plans
    BPE Law Group PC
    11140 Fair Oaks Blvd #300
    Fair Oaks, CA 95628
    (916) 966-2260
    Attorneys,  Corporation & Partnership Law Attorneys,  Business Law Attorneys,  Real Estate Attorneys
    Samuel and Samuel
    5050 Sunrise Blvd Ste. C1
    Fair Oaks, CA 95628
    (916) 426-2008
    Accident & Property Damage Attorneys,  Family Law Attorneys,  Labor & Employment Law Attorneys,  Att
    Lydell Jon D
    5050 Sunrise Blvd Ste #C3
    Fair Oaks, CA 95628
    (916) 966-1966
    Attorneys,  Probate Law Attorneys,  General Practice Attorneys,  Legal Service Plans,  Bankruptcy La
    Solorio Lawrence
    5150 Sunrise Blvd Suite D- 1
    Fair Oaks, CA 95628
    (916) 536-1371
    Medical Law Attorneys, Attorneys, Wills, Trusts & Estate Planning Attorneys, Estate Planning Attorne
    Lopez Timothy J
    10411 Fair Oaks Blvd
    Fair Oaks, CA 95628
    (916) 863-1300
    Divorce Assistance, Attorneys, Family Law Attorneys, General Practice Attorneys
    A Gentle Touch Paralegal Svc
    10411 Fair Oaks Blvd
    Fair Oaks, CA 95628
    (916) 863-1300
    Paralegals
    Spivack Trina
    5060 Sunrise Blvd
    Fair Oaks, CA 95628
    (916) 962-1233
    Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US