12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
 
FINANCIAL & MARITAL

Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
 

Advantages and Disadvantages of a Limited Liability Company (LLC) in Zip Code 19806

Advantages and Disadvantages of a Limited Liability Company (LLC) in Zip Code 19806


Grit is often the single-most predictor of success.
 
- Jonah Lehrer


A Limited Liability Company (LLC) is a legal business entity that combines the liability protection of a corporation, the operating flexibility of a Partnership, and the tax benefits of a sole proprietorship. Though the rules for forming an LLC vary by state, it is a popular option for many start-up businesses.

Advantages:

Limited Personal Liability and Exposure

One advantage of an LLC is the limited liability shield, which protects the personal assets of its members. Creditors, typically, cannot hold members personally responsible for the debts and liabilities of the business. Members can only be liable to the extent of their business investment.

Pass-through Taxation

Though there are an array of tax options for a Limited Liability Company; an LLC is generally treated as a "pass-through" entity. Profits and losses pass through the business to the members and are taxed at the personal level. The business itself is not taxed. Reporting is done on members' individual income tax returns. No double taxation with both the company and the owner(s) paying taxes on the earnings of the business.

Operational Flexibility & Simplicity

An LLC is much less formal than a corporation. Record keeping and administrative procedures are not as onerous. There are no quarterly and annual meetings, or tax filings. Neither is there a board of directors.

Legitimacy

Registering a company as an LLC adds credibility to a business, and can help in brand building and marketing to potential clients and suppliers. In addition, the company can enter into contracts on its own, and also acquire property.

Disadvantages:

Higher Fees

An LLC typically pays higher filing fees compared to some other business entities or sole proprietorships. Additionally, some states require annual renewal fees or franchise taxes. It is difficult for an LLC to attract additional investment because the company does not have the ability to issue stocks and bonds. Members have to finance its business activities, or take in private investors. Getting a loan can be tough, especially for small and start-up companies. The company may have to use its business, or personal, assets to guarantee business loans.

Fewer fringe benefits

Employees of an LLC who receive fringe benefits, for example, medical insurance and parking, must treat these benefits as taxable income. This is also true for employees who own more than 2% of an S-corporation. However, employees of a C-corporation do not have to report fringe benefits as taxable income.
 
Personalize & Print a Free DE 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 DE 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 Zip Code 19806
Rago Richard F
1401 Pennsylvania Ave # 101
Wilmington, DE 19806
(302) 658-9671
Attorneys, General Practice Attorneys
Arcaro Anthony R
31B Trolley Sq
Wilmington, DE 19806
(302) 426-9665
Attorneys, Legal Service Plans
Black Jr Lewis S
2601 W 17th St
Wilmington, DE 19806
(302) 654-9100
Attorneys
Mcneice Carolyn M
1823 W 16th St
Wilmington, DE 19806
(302) 571-9002
Attorneys, Legal Service Plans
Greto Albert M ESQ
1701 Shallcross Ave
Wilmington, DE 19806
(302) 761-9000
Attorneys, General Practice Attorneys
Dicamply Trish
1306 N Broom St
Wilmington, DE 19806
(302) 571-8942
Attorneys
Dana L Reynolds Law Offices
2 Mill Rd Ste 202
Wilmington, DE 19806
(302) 428-8900
Attorneys,  General Practice Attorneys,  Legal Service Plans,  Criminal Law Attorneys,  Family Law A
Reynolds Dana L
30C Trolley Sq
Wilmington, DE 19806
(302) 428-8900
Adoption Law Attorneys,  Legal Service Plans,  Attorneys,  Criminal Law Attorneys,  Family Law Attor
Xiaojuan Huang
2 Mill Road, Suite 202
Wilmington, DE 19806
(302) 428-8800
Attorneys
Fornias Edward J
910 Gilpin Ave
Wilmington, DE 19806
(302) 658-8700
Attorneys, General Practice Attorneys
Friedman Tiffany Q
910 Gilpin Ave
Wilmington, DE 19806
(302) 658-8700
Attorneys
Leonard James R
910 Gilpin Ave
Wilmington, DE 19806
(302) 658-8700
Attorneys, Legal Service Plans
Moore Jr William X
910 Gilpin Ave
Wilmington, DE 19806
(302) 658-8700
Attorneys
Roeberg David
910 Gilpin Ave
Wilmington, DE 19806
(302) 658-8700
Attorneys, Legal Service Plans
Krahmer Johannes R
2201 Kentmere Pkwy
Wilmington, DE 19806
(302) 652-8360
Attorneys, Legal Service Plans
Hearn Jr Clifford B
2302 W 16th St
Wilmington, DE 19806
(302) 654-8294
Attorneys
Hughes Thomas G
1700 W 14th St
Wilmington, DE 19806
(302) 655-8181
Attorneys
Sale Nell Graham
1700 W 14th St
Wilmington, DE 19806
(302) 655-8181
Attorneys
Sisk Mark D
1700 W 14th St
Wilmington, DE 19806
(302) 655-8181
Attorneys
Tigani Bruce W
1700 W 14th St
Wilmington, DE 19806
(302) 655-8181
Attorneys
Miller & Foulk
1003 Park Pl
Wilmington, DE 19806
(302) 571-8177
Attorneys
Jones Judy M
2323 Pennsylvania Ave # 3
Wilmington, DE 19806
(302) 757-8000
Attorneys, General Practice Attorneys, Legal Service Plans
Hagan Shauna T
1509 Gilpin Ave
Wilmington, DE 19806
(302) 651-7999
Attorneys, Legal Service Plans
Kellenher Daniel F
1509 Gilpin Ave
Wilmington, DE 19806
(302) 651-7999
Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US