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 Tracy, CA

Benefits of a Limited Liability Company (LLC) in Tracy, 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 Tracy, CA
    Ivan Morse
    793 S Tracy Blvd
    Tracy, CA 95376
    (209) 933-9876
    Criminal Law Attorneys, Attorneys
    Belden Michael C
    1030 N Central Ave
    Tracy, CA 95376
    (209) 835-9592
    Attorneys,  Legal Service Plans,  Estate Planning Attorneys,  Business Law Attorneys,  Real Estate A
    Willbanks & Wood Plc
    1047 S Tracy Blvd
    Tracy, CA 95376
    (209) 830-9191
    Attorneys
    Doherty John E Attorney
    924 N Central Ave
    Tracy, CA 95376
    (209) 832-8100
    Attorneys,  Estate Planning, Probate, & Living Trusts,  Accident & Property Damage Attorneys,  Civ
    Farah Nadia Law Offices
    2730 Naglee Rd
    Tracy, CA 95304
    (209) 229-7977
    Immigration Law Attorneys, Attorneys, General Practice Attorneys
    Greenhow Janet
    515 W Whittier Ave
    Tracy, CA 95376
    (209) 835-7731
    Paralegals
    Friend & Walton
    35 E 10th St
    Tracy, CA 95376
    (209) 833-7696
    Bankruptcy Law Attorneys, Attorneys, Bankruptcy Services
    Millicent Guiliani
    1203 Adam St
    Tracy, CA 95376
    (209) 835-6852
    Family Law Attorneys,  Attorneys,  Child Custody Attorneys,  Divorce Attorneys,  Mediation Services
    Letterchamp Consumer Advocates
    1245 Doubles Court
    Tracy, CA 95376
    (650) 892-6272
    Consumer Law Attorneys, Legal Service Plans, Process Servers
    Paralegal Plus
    60 E 11th St
    Tracy, CA 95376
    (209) 836-5430
    Legal Document Assistance,  Paralegals,  Divorce Assistance,  Attorneys Referral & Information Servi
    Divorce Center
    60 E 11th St
    Tracy, CA 95376
    (209) 836-5430
    Paralegals, Divorce Assistance, Legal Forms
    Court Forms Plus
    60 E 11th St
    Tracy, CA 95376
    (209) 836-5430
    Paralegals, Legal Forms, Divorce Assistance
    Geddes Sean
    324 E 11th St # A2
    Tracy, CA 95376
    (209) 832-5163
    Attorneys, Legal Service Plans
    Bird & Van Dyke Inc.
    1138 Parker Ave Unit B
    Tracy, CA 95376
    (209) 832-4800
    Criminal Law Attorneys,  Attorneys,  DUI & DWI Attorneys,  Legal Service Plans,  Bankruptcy Law Atto
    Jen Lee Law
    672 W 11th Street, Suite 307
    Tracy, CA 95376
    (209) 322-4651
    Attorneys,  Consumer Law Attorneys,  Bankruptcy Services,  Bankruptcy Law Attorneys
    Martin Michael S PC
    121 E 11th St # 1
    Tracy, CA 95376
    (209) 565-4050
    Attorneys,  General Practice Attorneys,  Legal Service Plans,  Bankruptcy Services,  Bankruptcy Law
    Temple-Inland
    400 W Valpico Rd
    Tracy, CA 95376
    (209) 833-3865
    Attorneys Support & Service Bureaus,  Attorneys Referral & Information Service,  Attorneys,  Legal S
    Mehlhaff & Mehlhaff
    23950 S Chrisman Rd Ste A
    Tracy, CA 95304
    (209) 835-3232
    Estate Planning Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Divorce Atto
    Alegre Sidney
    1103 Holly Dr
    Tracy, CA 95376
    (209) 830-2939
    Wills, Trusts & Estate Planning Attorneys,  Attorneys,  Legal Service Plans,  Bankruptcy Law Attorn
    Tracy Law Center
    120 E 12th St
    Tracy, CA 95376
    (209) 832-2500
    Attorneys,  Corporation & Partnership Law Attorneys,  General Practice Attorneys,  Legal Service Pla
    D'Angelo Vincent P
    1660 W Linne Rd Ste J-21
    Tracy, CA 95377
    (209) 834-2222
    Attorneys, Estate Planning, Probate, & Living Trusts, Wills, Trusts & Estate Planning Attorneys, Cor
    Nadrich & Cohen, LLP
    672 W 11th Street Suite 324
    Tracy, CA 95376
    (209) 937-0888
    Personal Injury Law Attorneys, Attorneys
    Connolly Mark V
    121 E 11th St
    Tracy, CA 95376
    (209) 836-0725
    Accident & Property Damage Attorneys, Personal Injury Law Attorneys, Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US