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 Placerville, CO

Benefits of a Limited Liability Company (LLC) in Placerville, CO


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 CO 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 CO 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 Placerville, CO
    Leprowse Jack
    7390 Lowell Blvd # 2
    Westminster, CO 80030
    (303) 872-7983
    Attorneys, Legal Service Plans, Child Custody Attorneys, Family Law Attorneys, Divorce Attorneys, So
    Jack LeProwse
    7390 Lowell Blvd
    Westminster, CO 80030
    (303) 872-7983
    Social Security & Disability Law Attorneys,  Attorneys,  Family Law Attorneys,  Divorce Attorneys,  
    Attorney Legal Services
    7117 Lowell Blvd
    Westminster, CO 80030
    (303) 427-7202
    Attorneys, General Practice Attorneys
    Mattisson Peter L
    7117 Lowell Blvd
    Westminster, CO 80030
    (303) 427-7202
    General Practice Attorneys, Attorneys
    Luke J Danielson Law Offices
    108 W Tomichi Ave # B
    Gunnison, CO 81230
    (970) 641-4605
    Attorneys,  Business Law Attorneys,  Personal Injury Law Attorneys,  Estate Planning Attorneys,  Leg
    Luke J. Danielson, PC
    219 N. Iowa St.
    Gunnison, CO 81230
    (970) 641-4605
    Attorneys, General Practice Attorneys, Legal Service Plans
    Delman Law Firm
    114 N Boulevard St
    Gunnison, CO 81230
    (970) 641-4222
    General Practice Attorneys, Attorneys
    Mc Donald James R
    234 N Main St # 2E
    Gunnison, CO 81230
    (970) 641-3900
    Attorneys, General Practice Attorneys, Legal Service Plans
    Dawson, Michael C - O'hayre Dawson & Norris
    120 N Taylor St
    Gunnison, CO 81230
    (970) 641-3326
    Attorneys, Business Law Attorneys, Real Estate Attorneys, Legal Service Plans, General Practice Atto
    Pawar Law Offices, LLC
    7124 Federal Blvd #600
    Westminster, CO 80030
    (720) 362-3041
    Bankruptcy Law Attorneys, Attorneys, Legal Forms
    Negri Kathleen
    35 S Tamarac St
    Denver, CO 80230
    (303) 343-2994
    Attorneys
    Barton David M
    304 W Tomichi Ave # 26
    Gunnison, CO 81230
    (970) 641-2181
    General Practice Attorneys, Attorneys
    Hill Jr John R
    525 N Main St
    Gunnison, CO 81230
    (970) 641-1903
    General Practice Attorneys, Attorneys, Legal Service Plans
    Landwehr Roderick E
    304 W Tomichi Ave # 20
    Gunnison, CO 81230
    (970) 641-1577
    General Practice Attorneys, Attorneys
    Miller Clayton R
    232 W Tomichi Ave # 201
    Gunnison, CO 81230
    (970) 641-1334
    General Practice Attorneys, Attorneys
    Cliggett Charles F
    110 S Main St
    Gunnison, CO 81230
    (970) 641-1154
    Attorneys, Legal Service Plans
    Stephens Dan
    7390 Lowell Blvd
    Westminster, CO 80030
    (303) 428-1151
    Attorneys, Immigration & Naturalization Consultants, General Practice Attorneys
    Mellman Gerald N
    7742 E Archer Pl
    Denver, CO 80230
    (303) 363-1139
    Attorneys, General Practice Attorneys
    Loitz Victor
    7390 Lowell Blvd
    Westminster, CO 80030
    (303) 657-1077
    Attorneys, General Practice Attorneys
    Read Deborah
    7400 Orchard Ct
    Westminster, CO 80030
    (720) 529-0848
    Attorneys
    Waltemath Tamra K
    3843 W 73rd Ave
    Westminster, CO 80030
    (303) 657-0360
    Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US