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 Dover, DE

Benefits of a Limited Liability Company (LLC) in Dover, DE


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 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 Dover, DE
    Dill Melissa
    46 The Grn
    Dover, DE 19901
    (302) 678-9900
    Attorneys
    Liguori James
    46 The Grn
    Dover, DE 19901
    (302) 678-9900
    Attorneys, Patent, Trademark & Copyright Law Attorneys, General Practice Attorneys
    Morris Gregory A
    46 The Grn
    Dover, DE 19901
    (302) 678-9900
    Attorneys
    Riordan Courtney
    9 E Loockerman St # 3A
    Dover, DE 19901
    (302) 744-9800
    Attorneys
    Yiengst Laura A
    314 S State St
    Dover, DE 19901
    (302) 264-9780
    Attorneys, Legal Service Plans
    Grady & Hampton LLC
    6 N Bradford St
    Dover, DE 19904
    (302) 572-9739
    Medical Malpractice Attorneys,  Attorneys,  Social Security & Disability Law Attorneys,  Personal In
    William F Jaworski
    1274 S Governors Ave
    Dover, DE 19904
    (302) 572-9738
    Workers Compensation Assistance,  Personal Injury Law Attorneys,  Bankruptcy Services,  Bankruptcy L
    Bush IV William G
    214 S State St
    Dover, DE 19901
    (302) 672-9723
    Attorneys, Legal Service Plans
    Malkiewicz Michael
    2 W Loockerman St
    Dover, DE 19904
    (302) 628-9504
    Attorneys
    Thomas D Donovan PA
    48 The Grn
    Dover, DE 19901
    (302) 264-9354
    Attorneys, Legal Service Plans
    Thomas D Donovan PA
    99 Wolf Creek Blvd # 3
    Dover, DE 19901
    (302) 264-9354
    Attorneys
    Adam D. Windett
    438 South State Street
    Dover, DE 19901
    (302) 744-9321
    Criminal Law Attorneys, Family Law Attorneys, Divorce Attorneys, DUI & DWI Attorneys, General Practi
    Melissa A. Hopkins
    438 South State Street
    Dover, DE 19901
    (302) 744-9321
    Family Law Attorneys, Divorce Attorneys, Landlord & Tenant Attorneys, Child Custody Attorneys
    John R Garey PA
    48 The Grn
    Dover, DE 19901
    (302) 744-9290
    Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Divorce Attorneys
    Pappoulis Nina
    896 S State St
    Dover, DE 19901
    (302) 421-9101
    Attorneys
    Mc Nelis Brian T
    300 S State St
    Dover, DE 19901
    (302) 674-8822
    Attorneys, General Practice Attorneys, Legal Service Plans
    Young Jeffrey A
    300 S State St
    Dover, DE 19901
    (302) 674-8822
    Attorneys
    Miller Beth Attorney
    29 N State St
    Dover, DE 19901
    (302) 678-8815
    Attorneys
    Morris James LLP
    29 N State St
    Dover, DE 19901
    (302) 678-8815
    Attorneys,  Personal Injury Law Attorneys,  Legal Service Plans,  Wrongful Death Attorneys,  General
    Bhm Insurance Serives
    306 S State St
    Dover, DE 19901
    (302) 678-8787
    Attorneys, Insurance, Legal Service Plans
    Sisson Beverly
    306 S State St
    Dover, DE 19901
    (302) 678-8787
    Attorneys
    Wilson P Scott
    122 Bank Ln
    Dover, DE 19904
    (302) 730-8716
    Attorneys
    Collins Robert C
    1140 S State St
    Dover, DE 19901
    (302) 678-8700
    Attorneys
    Bhaya Shakuntla L Atty
    911 S Dupont Hwy
    Dover, DE 19901
    (302) 734-8700
    Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US