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 Sacramento, CA

Benefits of a Limited Liability Company (LLC) in Sacramento, 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 Sacramento, CA
    Tara J. Macomber Law Office
    901 H Street Suite 105
    Sacramento, CA 95814
    (415) 227-9955
    Entertainment & Sports Law Attorneys, Real Estate Attorneys, Wills, Trusts & Estate Planning Attorne
    The Ison Law Group
    2443 Fair Oaks Blvd. #508
    Sacramento, CA 95825
    (916) 204-9950
    Employment Discrimination Attorneys, Private Investigators & Detectives, Training Consultants
    Fletcher Jeffrey
    980 9th St
    Sacramento, CA 95814
    (916) 449-9937
    Attorneys, Legal Service Plans
    Ferris Noel M
    1001 G St
    Sacramento, CA 95814
    (916) 492-9911
    Attorneys,  Accident & Property Damage Attorneys,  Wrongful Death Attorneys,  Medical Malpractice At
    Mc Dougal & Co
    2515 Venture Oaks Way # 380
    Sacramento, CA 95833
    (916) 924-9911
    Corporation & Partnership Law Attorneys, Attorneys, Legal Service Plans
    The Choyce Law Firm
    980 9th Street # 16
    Sacramento, CA 95814
    (916) 449-9910
    Divorce Attorneys, Family Law Attorneys
    Anderson & Johnson LLP
    855 Howe Ave Ste. 6
    Sacramento, CA 95825
    (916) 922-9902
    Attorneys,  Accident & Property Damage Attorneys,  Personal Injury Law Attorneys,  Employee Benefits
    Benavidez Arturo
    331 J St
    Sacramento, CA 95814
    (916) 444-9900
    Attorneys Referral & Information Service, Legal Service Plans, Attorneys
    Gallagher Group Legal Phtcpy
    2619 La Mesa Way
    Sacramento, CA 95825
    (916) 488-9895
    Attorneys Support & Service Bureaus, Attorneys, Legal Service Plans
    Panneton Law Corporation
    845 University Ave
    Sacramento, CA 95825
    (916) 921-9890
    General Practice Attorneys, Attorneys, Legal Service Plans
    Northern California Justice Center
    2740 Fulton Ave
    Sacramento, CA 95821
    (916) 480-9836
    Attorneys,  Legal Service Plans,  Accident & Property Damage Attorneys,  Civil Litigation & Trial La
    Mojaddidi Law
    3400 Cottage Way, Suite E
    Sacramento, CA 95825
    (916) 254-9825
    Divorce Attorneys, Family Law Attorneys, Attorneys, Child Custody Attorneys
    Gonzalez Forms Prep
    3263 1st Ave
    Sacramento, CA 95817
    (916) 453-9800
    Immigration Law Attorneys, Immigration & Naturalization Consultants, Attorneys
    Margaret B Walton
    700 University Ave
    Sacramento, CA 95825
    (916) 924-9800
    Attorneys, Family Law Attorneys, Divorce Assistance, Legal Service Plans
    Simas & Associates, Ltd.
    3835 N Freeway Blvd # 228
    Sacramento, CA 95834
    (916) 789-9800
    Attorneys,  Federal Law Attorneys,  Legal Service Plans,  Administrative & Governmental Law Attorney
    C P Legal Svc
    2730 Arden Way # 222
    Sacramento, CA 95825
    (916) 482-9720
    Attorneys Support & Service Bureaus, Attorneys, Legal Service Plans
    Bhakhri Ashwani
    8245 Florin Rd
    Sacramento, CA 95828
    (916) 379-9700
    Immigration Law Attorneys, Attorneys, General Practice Attorneys
    Anderson Goff & Wilson
    1325 Howe Ave Ste 107
    Sacramento, CA 95825
    (916) 646-9694
    Estate Planning Attorneys, Legal Service Plans, Attorneys
    Sacramento Legal Clinic
    1325 Howe Ave
    Sacramento, CA 95825
    (916) 646-9694
    Divorce Attorneys,  Probate Law Attorneys,  Bankruptcy Law Attorneys,  Attorneys,  Family Law Attorn
    Engel Julius
    1600 Sacramento Inn Way # 125
    Sacramento, CA 95815
    (916) 515-9693
    Bankruptcy Law Attorneys, Attorneys, Legal Service Plans
    Mehlhop Bart L
    1330 21st St Suite 102
    Sacramento, CA 95811
    (916) 930-9675
    Attorneys,  Employment Opportunities,  Employee Benefits & Worker Compensation Attorneys,  Workers C
    Miles Law Firm
    3838 Watt Ave
    Sacramento, CA 95821
    (916) 973-9674
    Attorneys,  General Practice Attorneys,  Legal Service Plans,  Business Law Attorneys,  Civil Litiga
    Family Law Document Express
    1321 Howe Ave
    Sacramento, CA 95825
    (916) 923-9660
    Family Law Attorneys, Attorneys, Legal Service Plans
    Pacific Coast Legal Service
    1832 Tribute Rd
    Sacramento, CA 95815
    (916) 923-9651
    Attorneys Support & Service Bureaus
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US