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 Bristol, CT

Benefits of a Limited Liability Company (LLC) in Bristol, 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 Bristol, CT
    Diane Summers
    985 Farmington Ave
    Bristol, CT 06010
    (860) 585-9888
    Attorneys
    Daniel B Scott
    22 Pine St
    Bristol, CT 06010
    (860) 585-9647
    Social Security & Disability Law Attorneys,  Attorneys,  Personal Injury Law Attorneys,  Automobile
    Diamantis Konstantino
    201 West St
    Bristol, CT 06010
    (860) 585-9500
    Criminal Law Attorneys, Attorneys, Legal Service Plans
    Petosa Ronald
    17 Riverside Ave
    Bristol, CT 06010
    (860) 584-8881
    Attorneys, Real Estate Attorneys, General Practice Attorneys, Legal Service Plans
    Jazlowiecki & Jazlowiecki
    11 Lincoln Ave
    Bristol, CT 06010
    (860) 589-8000
    Attorneys, Legal Service Plans
    Ajs Law Firm
    102 Skyridge Rd
    Bristol, CT 06010
    (860) 261-5870
    General Practice Attorneys, Attorneys
    Lodge, Timothy M
    17 Riverside Ave
    Bristol, CT 06010
    (860) 585-5815
    Bankruptcy Law Attorneys
    Robert F Cohen
    580 Broad St # 101
    Bristol, CT 06010
    (860) 584-5625
    Attorneys
    Storm Matthew
    206 N Main St
    Bristol, CT 06010
    (860) 583-5555
    Bankruptcy Law Attorneys, Attorneys, Legal Service Plans
    Morrocco Jr Alfred F
    200 Summer St
    Bristol, CT 06010
    (860) 582-5300
    Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
    Romaniello Law Firm
    81 N Main St
    Bristol, CT 06010
    (860) 583-5291
    General Practice Attorneys, Attorneys, Legal Service Plans
    Newman Bruce E
    99 North St
    Bristol, CT 06010
    (860) 583-5200
    General Practice Attorneys, Legal Service Plans, Attorneys
    Chiasson II Roger E
    160 Farmington Ave
    Bristol, CT 06010
    (860) 584-5105
    Attorneys, Family Law Attorneys, Probate Law Attorneys, Estate Planning, Probate, & Living Trusts, J
    Creed Kevin E
    99 North St
    Bristol, CT 06010
    (860) 583-4800
    Attorneys,  Accident & Property Damage Attorneys,  General Practice Attorneys,  Legal Service Plans
    James H Halpin Law Office
    73 School St
    Bristol, CT 06010
    (860) 516-4610
    Attorneys, General Practice Attorneys, Legal Service Plans
    Armata Barry F
    747 Stafford Ave
    Bristol, CT 06010
    (860) 589-4417
    Attorneys, General Practice Attorneys, Legal Service Plans
    Maxwell John D
    747 Stafford Ave
    Bristol, CT 06010
    (860) 589-4417
    Attorneys,  Criminal Law Attorneys,  Labor & Employment Law Attorneys,  Personal Injury Law Attorney
    Mccarthy Christopher
    747 Stafford Ave
    Bristol, CT 06010
    (860) 589-4417
    Criminal Law Attorneys, Attorneys
    Paindiris Nicholas
    747 Stafford Ave
    Bristol, CT 06010
    (860) 589-4417
    Attorneys,  Accident & Property Damage Attorneys,  Personal Injury Law Attorneys,  Legal Service Pla
    Peoples Sean M
    747 Stafford Ave
    Bristol, CT 06010
    (860) 589-4417
    Personal Injury Law Attorneys, Attorneys, Labor & Employment Law Attorneys
    Simonik Melissa L
    1001 Farmington Ave
    Bristol, CT 06010
    (860) 506-4409
    General Practice Attorneys, Attorneys
    Furey Timothy W
    43 Bellevue Ave
    Bristol, CT 06010
    (860) 589-4343
    Attorneys
    Furey Donovan Tracy & Daly PC
    43 Bellevue Ave
    Bristol, CT 06010
    (860) 589-4343
    Divorce Attorneys,  Attorneys,  Criminal Law Attorneys,  Personal Injury Law Attorneys
    Daly Michael C
    43 Bellevue Ave
    Bristol, CT 06010
    (860) 589-4343
    Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US