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 Fillmore, CA

Benefits of a Limited Liability Company (LLC) in Fillmore, 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 Fillmore, CA
    Grey Richard N
    17801 Ventura Blvd
    Encino, CA 91316
    (818) 345-9780
    Attorneys, Labor & Employment Law Attorneys, Corporation & Partnership Law Attorneys, Legal Service
    Christopher J Lauria
    1605 W Olympic Blvd # 9011
    Los Angeles, CA 90015
    (213) 427-9742
    Attorneys, Legal Service Plans
    Okabe & Haushalter
    1934 Divisadero St, Ste 100
    San Francisco, CA 94115
    (415) 483-9708
    Open Daily 24 Hours, 24 Hour Emergency Service Available
    Engel Julius
    1600 Sacramento Inn Way # 125
    Sacramento, CA 95815
    (916) 515-9693
    Bankruptcy Law Attorneys, Attorneys, Legal Service Plans
    Stromberg, Jeffrey T
    423 E St
    Davis, CA 95616
    (530) 756-9677
    Attorneys
    Pacific Coast Legal Service
    1832 Tribute Rd
    Sacramento, CA 95815
    (916) 923-9651
    Attorneys Support & Service Bureaus
    Pro Legal
    1706 S Figueroa St
    Los Angeles, CA 90015
    (619) 338-9600
    Attorneys Support & Service Bureaus
    Nelson & Schwab
    1420 River Park Dr
    Sacramento, CA 95815
    (916) 564-9588
    Attorneys,  General Practice Attorneys,  Bankruptcy Services,  Legal Service Plans,  Bankruptcy Law
    Maid Lisa L
    1111 S Grand Ave # 101
    Los Angeles, CA 90015
    (213) 745-9511
    Attorneys, Labor & Employment Law Attorneys, Corporation & Partnership Law Attorneys, Legal Service
    Maki Lisa
    1111 S Grand Ave # 101
    Los Angeles, CA 90015
    (213) 745-9511
    Attorneys, Labor & Employment Law Attorneys, Corporation & Partnership Law Attorneys, Legal Service
    Reynolds Law Corp.
    424 2nd St
    Davis, CA 95616
    (530) 601-9504
    Bankruptcy Law Attorneys,  Attorneys,  Bankruptcy Services,  Legal Service Plans
    Shapiro Jerry E
    2301 J St
    Sacramento, CA 95816
    (916) 447-9400
    Attorneys, Legal Service Plans
    Patten Faith & Sandford
    635 W Foothill Blvd
    Monrovia, CA 91016
    (626) 359-9335
    Estate Planning Attorneys,  Attorneys,  Legal Service Plans,  Criminal Law Attorneys,  Family Law At
    Uchiyama Karen Y
    1441 Baker St
    San Francisco, CA 94115
    (415) 563-9300
    General Practice Attorneys, Attorneys, Legal Service Plans
    Gohari Steve
    1625 W Olympic Blvd
    Los Angeles, CA 90015
    (213) 251-9090
    General Practice Attorneys, Attorneys
    Los Angeles LDA Services
    1625 W Olympic Blvd
    Los Angeles, CA 90015
    (213) 351-9090
    Attorneys Support & Service Bureaus
    Jacob Emrani
    1516 S Broadway
    Los Angeles, CA 90015
    (888) 820-9050
    Attorneys,  General Practice Attorneys,  Legal Service Plans,  Criminal Law Attorneys,  Labor & Empl
    Oficina Juridica Guatemanteca
    1609 James M Wood Blvd
    Los Angeles, CA 90015
    (213) 249-9015
    Paralegals, Legal Document Assistance
    Agencia Privada De Inmigracion
    19059 Valley Blvd
    Bloomington, CA 92316
    (909) 421-8880
    Immigration Law Attorneys, Attorneys
    Chan Robert
    1221 Vicente St
    San Francisco, CA 94116
    (415) 759-8877
    General Practice Attorneys, Attorneys
    Doustkam & Associates
    1625 W Olympic Blvd
    Los Angeles, CA 90015
    (213) 480-8844
    Bankruptcy Law Attorneys,  Bankruptcy Services,  Attorneys,  General Practice Attorneys
    DeAmicis Brian
    2431 Capitol Ave
    Sacramento, CA 95816
    (916) 440-8833
    Attorneys, Bankruptcy Services, Bankruptcy Law Attorneys
    A1 Rapid Docs
    1600 Sacramento Inn Way
    Sacramento, CA 95815
    (916) 972-8779
    Family Law Attorneys, Attorneys
    Adelson Testan Brundo & Popalardo
    1515 River Park Dr
    Sacramento, CA 95815
    (916) 481-8775
    Attorneys, General Practice Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US