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 Avon, CT

Benefits of a Limited Liability Company (LLC) in Avon, CT


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 CT 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 CT 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 Avon, CT
    Chester Samuel D
    195 W Main St Suite 18
    Avon, CT 06001
    (860) 284-9681
    Attorneys, Legal Service Plans
    David A. Zipfel & Associates, LLC
    146 Hopmeadow St
    Avon, CT 06001
    (860) 675-9000
    Personal Injury Law Attorneys, Attorneys
    David Zipfel & Associates
    146 Hopmeadow St
    Avon, CT 06001
    (860) 675-9000
    General Practice Attorneys, Legal Service Plans, Attorneys
    Gasser & Huget
    20 E Main St
    Avon, CT 06001
    (860) 674-8342
    Attorneys, General Practice Attorneys
    Connolly Mark V Atty
    111 Simsbury Rd
    Avon, CT 06001
    (860) 677-8050
    Attorneys
    Starble Jonathan M
    1 Darling Dr
    Avon, CT 06001
    (860) 678-7775
    Attorneys
    Donoghue Michael J
    111 Simsbury Rd
    Avon, CT 06001
    (860) 678-7522
    Estate Planning Attorneys, Attorneys, Business Law Attorneys, Legal Service Plans
    Rosenthal Edward
    20 Avon Meadow Ln # 230
    Avon, CT 06001
    (860) 677-7171
    Attorneys
    Katz Morton N
    77 Wellington Hgts Rd
    Avon, CT 06001
    (860) 677-6771
    General Practice Attorneys, Attorneys, Legal Service Plans
    Roberts M Meyers
    56 E Main St
    Avon, CT 06001
    (860) 677-6655
    General Practice Attorneys, Attorneys
    Link Leslie A
    56 E Main St
    Avon, CT 06001
    (860) 677-6655
    Attorneys, Legal Service Plans
    Lawrence & Jurkiewicz
    30 E Main St
    Avon, CT 06001
    (860) 677-6416
    Attorneys,  Family Law Attorneys,  Business Bankruptcy Law Attorneys,  Bankruptcy Law Attorneys
    Kraner and Hess
    23 Arts Center Ct
    Avon, CT 06001
    (860) 269-6244
    Attorneys, Legal Service Plans
    Osborne Melissa E
    111 Simsbury Rd
    Avon, CT 06001
    (860) 674-6032
    General Practice Attorneys, Attorneys
    Klein & Babbitt LLC
    36B W Main St
    Avon, CT 06001
    (860) 677-5885
    Automobile Accident Attorneys, Divorce Attorneys, Personal Injury Law Attorneys, Real Estate Attorne
    Litchfield Cavo
    40 Tower Ln # 2
    Avon, CT 06001
    (860) 255-5577
    Attorneys, Legal Service Plans
    W David Zitzkat
    111 Simsbury Rd Ste 4B
    Avon, CT 06001
    (860) 404-2333
    Attorneys
    F William O'Connor Law Office, LLC
    20 E Main St
    Avon, CT 06001
    (860) 677-2254
    Tax Attorneys, Estate Planning, Probate, & Living Trusts, Elder Law Attorneys, Business Law Attorney
    Moss Patricia
    111 Simsbury Rd
    Avon, CT 06001
    (860) 676-2220
    General Practice Attorneys, Attorneys, Legal Service Plans
    Carignan Philip J
    111 Simsbury Rd Ste 2
    Avon, CT 06001
    (860) 678-2094
    Attorneys
    Drew & Mersereau PC
    47 W Main St
    Avon, CT 06001
    (860) 677-1974
    Attorneys,  Business Law Attorneys,  Legal Service Plans,  Estate Planning Attorneys
    Smith Susan K
    24 E Main St
    Avon, CT 06001
    (860) 678-1860
    Mediation Services, Attorneys, Legal Service Plans
    Donna Buttler Law
    152 Simsbury Rd
    Avon, CT 06001
    (860) 678-1620
    Divorce Attorneys, Attorneys, Criminal Law Attorneys, DUI & DWI Attorneys
    Case & Case PC
    10 Tower Ln
    Avon, CT 06001
    (860) 678-1434
    Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US