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 San Francisco, CA

Benefits of a Limited Liability Company (LLC) in San Francisco, 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 San Francisco, CA
    Walker Corporate Law Group, PLLC
    101 California St Suite 2450
    San Francisco, CA 94111
    (415) 979-9999
    Business Litigation Attorneys
    Estey & Bomberger LLP
    101 California St Suite 2450
    San Francisco, CA 94111
    (619) 295-9980
    Personal Injury Law Attorneys
    Sandra Scott Law Office
    255 California St Ste 10
    San Francisco, CA 94111
    (415) 362-9975
    Mon. - Fri. 9am - 5pm, Sat. - Sun. CLOSED
    Jonathan M. Rutledge
    225 Bush St Suite 1600
    San Francisco, CA 94104
    (888) 441-9973
    Attorneys, Criminal Law Attorneys, DUI & DWI Attorneys
    A. Gurley SF Divorce Lawyer
    3755 Balboa Street, Ste 204
    San Francisco, CA 94121
    (415) 240-9953
    Child Custody Attorneys, Family Law Attorneys, Domestic Violence Attorneys, Divorce Attorneys
    Thai Duy
    351 California St # 550
    San Francisco, CA 94104
    (415) 296-9927
    Attorneys, Legal Service Plans
    Gray Law Firm
    235 Montgomery St # 930
    San Francisco, CA 94104
    (415) 262-9926
    Insurance Attorneys, Attorneys, Legal Service Plans
    Baughman & Wang
    111 Pine St # 1225
    San Francisco, CA 94111
    (415) 576-9923
    Attorneys, General Practice Attorneys, Legal Service Plans
    Herman D Papa
    354 Pine St # 3
    San Francisco, CA 94104
    (415) 399-9922
    Attorneys, Legal Service Plans
    Capron John R
    400 Montgomery St
    San Francisco, CA 94104
    (415) 693-9901
    Attorneys, General Practice Attorneys
    Bankruptcy Law Center of Thomas R. Burns
    703 Market St Ste 1109
    San Francisco, CA 94103
    (415) 543-9900
    Business Bankruptcy Law Attorneys,  Attorneys,  Corporation & Partnership Law Attorneys,  Legal Serv
    Thomas Burns R
    703 Market St Ste 1109
    San Francisco, CA 94103
    (415) 543-9900
    Attorneys
    Litigation-Tech
    44 Montgomery St
    San Francisco, CA 94104
    (415) 291-9900
    Attorneys Support & Service Bureaus, Attorneys, General Practice Attorneys
    Nelson Law Group
    26 W Portal Ave Ste 1
    San Francisco, CA 94127
    (415) 702-9869
    Corporation & Partnership Law Attorneys, Attorneys, Labor & Employment Law Attorneys, Legal Service
    Hall Michael C.
    605 Market St
    San Francisco, CA 94105
    (415) 512-9865
    Attorneys,  Probate Law Attorneys,  Landlord & Tenant Attorneys,  Real Estate Attorneys,  Wills, Tr
    Jeri Wyrick
    3929 24th St
    San Francisco, CA 94114
    (415) 830-9858
    Workers Compensation Assistance,  Attorneys,  Employment Opportunities,  Employee Benefits & Worker
    Aspelin John
    220 Montgomery St # 1009
    San Francisco, CA 94104
    (415) 296-9812
    General Practice Attorneys, Attorneys, Legal Service Plans
    Tobriner Michael C Atty
    115 Sansome St
    San Francisco, CA 94104
    (415) 981-9801
    General Practice Attorneys, Attorneys
    Stebner & Associates
    870 Market St # 1212
    San Francisco, CA 94102
    (415) 362-9800
    Attorneys,  Elder Law Attorneys,  Accident & Property Damage Attorneys,  Personal Injury Law Attorne
    Nelson Daryl R
    235 Moulton St
    San Francisco, CA 94123
    (415) 923-9800
    Attorneys, General Practice Attorneys, Legal Service Plans
    Rogers Richard
    100 Bush St # 1980
    San Francisco, CA 94104
    (415) 981-9788
    General Practice Attorneys, Attorneys
    Okabe & Haushalter
    1934 Divisadero St, Ste 100
    San Francisco, CA 94115
    (415) 483-9708
    Open Daily 24 Hours, 24 Hour Emergency Service Available
    Friedman Bruce K
    425 California St
    San Francisco, CA 94104
    (415) 395-9700
    Attorneys, Estate Planning Attorneys, Legal Service Plans, General Practice Attorneys
    Gotcha Legal Services
    601 Van Ness Ave E-101
    San Francisco, CA 94102
    (415) 357-9625
    Attorneys Support & Service Bureaus, Process Servers, Professional Organizations
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US