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 Monterey, CA

Benefits of a Limited Liability Company (LLC) in Monterey, 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 Monterey, CA
    Lefler Wendy Roy
    101 Camino Aguajito
    Monterey, CA 93940
    (831) 655-9682
    Attorneys, General Practice Attorneys
    Catherine S Talbot
    479 Pacific St # 5B
    Monterey, CA 93940
    (831) 657-9556
    Attorneys, Legal Service Plans
    Goldstein L Seth
    2100 Garden Rd Ste H8
    Monterey, CA 93940
    (831) 372-9511
    Attorneys, Legal Service Plans
    Scandia Lopez Llp
    550 Wave St # 5
    Monterey, CA 93940
    (831) 643-9409
    Insurance Attorneys
    Rasch Jean
    2511 Garden Rd Ste A175
    Monterey, CA 93940
    (831) 647-9200
    Attorneys, General Practice Attorneys
    Ascher, Yvonne
    444 Pearl St Suite A1
    Monterey, CA 93940
    (831) 641-9019
    Attorneys,  Estate Planning Attorneys,  Administrative & Governmental Law Attorneys,  General Practi
    Holian Mejia Barbra
    400 Foam St # C
    Monterey, CA 93940
    (831) 648-8981
    Estate Planning Attorneys, Attorneys, Criminal Law Attorneys, Legal Service Plans
    Holk Eric N
    60 Garden Court, Suite 205
    Monterey, CA 93940
    (831) 622-8808
    Legal Service Plans, Estate Planning Attorneys, Wills, Trusts & Estate Planning Attorneys, Attorneys
    Mendenhall Michael
    69 Soledad Dr
    Monterey, CA 93940
    (831) 375-8600
    Paralegals, Legal Document Assistance
    Dewar Roderick L
    587 Hartnell St
    Monterey, CA 93940
    (831) 264-8445
    Attorneys, Wills, Trusts & Estate Planning Attorneys
    Logar Inc
    1099 Del Monte Ave
    Monterey, CA 93940
    (831) 372-8303
    Divorce Attorneys
    Brown David W
    665 Munras Ave # 210
    Monterey, CA 93940
    (831) 649-8211
    Divorce Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Business Law Attorne
    William H Soskin Law Offices
    2100 Garden Rd
    Monterey, CA 93940
    (831) 649-8006
    Attorneys, Tax Attorneys, Business Law Attorneys, Estate Planning Attorneys, Legal Service Plans
    Soukup Barbara
    215 W Franklin St # 209
    Monterey, CA 93940
    (831) 751-7990
    Attorneys,  Criminal Law Attorneys,  Immigration Law Attorneys,  Administrative & Governmental Law A
    Stevenson Marilyn
    546 Hartnell St
    Monterey, CA 93940
    (831) 751-7944
    Attorneys, Child Custody Attorneys, Family Law Attorneys
    Dorset Katherine J
    60 Garden Ct
    Monterey, CA 93940
    (831) 372-7900
    Attorneys, Legal Service Plans
    Chubb Mary P Law Offices
    550 Figueroa St
    Monterey, CA 93940
    (831) 372-7825
    Attorneys,  Guardianship Services,  Family Law Attorneys,  Divorce Attorneys
    Kroopf Kenneth A Professional Law Corp
    500 Lighthouse Ave
    Monterey, CA 93940
    (831) 373-7762
    Attorneys,  Real Estate Attorneys,  Personal Injury Law Attorneys,  Insurance Attorneys,  Labor & Em
    Moraz Michaeleen
    659 Abrego St # 8
    Monterey, CA 93940
    (831) 648-7060
    Attorneys, Family Law Attorneys, Divorce Assistance, Legal Service Plans
    DeBartolo Law
    99 Pacific Street, Suite 555-I
    Monterey, CA 93940
    (831) 402-7006
    Attorneys, Labor & Employment Law Attorneys, Business Law Attorneys, Discrimination & Civil Rights L
    James Newhouse
    24600 Silver Cloud Ct
    Monterey, CA 93940
    (831) 920-6404
    DUI & DWI Attorneys,  Domestic Violence Attorneys,  Drug Charges Attorneys,  Criminal Law Attorneys,
    Bruce Johnsen & Associates
    824 Munras Ave
    Monterey, CA 93940
    (831) 373-5969
    Business & Personal Coaches,  Mediation Services,  Business Coaches & Consultants,  Career & Vocatio
    Affordable Divorce Law
    395 Del Monte Ctr #250
    Monterey, CA 93940
    (831) 296-5817
    Child Custody Attorneys,  Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Divorce Assistance
    Willoughby David A
    2100 Garden Rd # A210
    Monterey, CA 93940
    (831) 655-5707
    General Practice Attorneys, Attorneys, Title Companies
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US