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 Panama City, FL

Benefits of a Limited Liability Company (LLC) in Panama City, FL


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 FL 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 FL 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 Panama City, FL
    Amerilawyer
    2516 Chaucer Cir
    Panama City, FL 32405
    (850) 913-9797
    Corporation & Partnership Law Attorneys, Attorneys
    Panhandle Court Reporting
    1336 Grace Ave
    Panama City, FL 32401
    (850) 747-9311
    Attorneys, Court & Convention Reporters, Stenographers-Public
    Bruner Vince Attorney
    3201 W Highway 98
    Panama City, FL 32401
    (850) 769-9292
    Attorneys
    Pope & Barloga PA
    736 Jenks Ave
    Panama City, FL 32401
    (850) 784-9174
    Attorneys, Tax Attorneys, Business Law Attorneys, Estate Planning Attorneys, Elder Law Attorneys, Le
    Cassidy Law Firm
    304 Magnolia Ave
    Panama City, FL 32401
    (850) 913-9130
    General Practice Attorneys, Attorneys
    Law Office
    1438 Balboa Ave
    Panama City, FL 32401
    (850) 913-9066
    General Practice Attorneys, Attorneys
    Carroll Law, P.A.
    304 Harrison Ave
    Panama City, FL 32401
    (850) 785-9005
    Child Custody Attorneys, Divorce Attorneys, Family Law Attorneys
    Syfrett and Dykes Law Offices PA
    311 Magnolia Ave
    Panama City, FL 32401
    (850) 252-8994
    Attorneys,  Criminal Law Attorneys,  Wrongful Death Attorneys,  Accident & Property Damage Attorneys
    Duke, Julia G
    1021 Grace Ave
    Panama City, FL 32401
    (850) 913-8866
    Attorneys, Family Law Attorneys, Divorce Attorneys
    Higgins Tanya J
    319 Magnolia Ave
    Panama City, FL 32401
    (850) 769-8844
    Criminal Law Attorneys, Attorneys
    Stephenson Dustin PA Attorney & Counselor at Law
    1156 Jenks Ave
    Panama City, FL 32401
    (850) 252-8752
    Attorneys,  Criminal Law Attorneys,  Juvenile Law Attorneys,  Wills, Trusts & Estate Planning Attor
    Boyd Cecilia Redding
    211 E 4th St
    Panama City, FL 32401
    (850) 872-8514
    Attorneys, Wills, Trusts & Estate Planning Attorneys, Family Law Attorneys
    Dowdy Emily L
    436 McKenzie Ave
    Panama City, FL 32401
    (850) 785-8112
    Attorneys, Labor & Employment Law Attorneys
    Dowdy, Emily L - Advantage Land & Title Inc
    475 Harrison Ave
    Panama City, FL 32401
    (850) 785-8112
    Attorneys, Real Estate Attorneys, Family Law Attorneys, Legal Service Plans
    Walter B Smith
    235 E Beach Dr
    Panama City, FL 32401
    (850) 252-8078
    Attorneys,  Criminal Law Attorneys,  Tax Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Ge
    Alvoid, Richard PA
    356 W Nine Mile Rd
    Panama City, FL 32401
    (850) 522-8030
    Immigration Law Attorneys
    Fisher J Mark
    3201 W Highway 98
    Panama City, FL 32401
    (850) 235-8030
    Estate Planning Attorneys, Attorneys, Wills, Trusts & Estate Planning Attorneys, Legal Service Plans
    Ueberschaer Thomas J PA
    929 Jenks Ave
    Panama City, FL 32401
    (850) 785-8011
    Personal Injury Law Attorneys,  Social Security & Disability Law Attorneys,  Employee Benefits & Wor
    Ben Bollinger Criminal Trial Attorney
    315 E 4th St
    Panama City, FL 32401
    (850) 763-8003
    Attorneys, Criminal Law Attorneys
    Brister Todd C
    810 Grace Ave
    Panama City, FL 32401
    (850) 215-7885
    General Practice Attorneys, Attorneys
    Peters, Alvin L
    25 E 8th St
    Panama City, FL 32401
    (850) 769-7825
    Corporation & Partnership Law Attorneys, Attorneys, Business Law Attorneys, Legal Service Plans
    Scoon Cecile /Atty-- Peter Alvin
    25 E 8th St
    Panama City, FL 32401
    (850) 769-7825
    Labor & Employment Law Attorneys, Attorneys
    Erich Ndrlhnr Law Office
    1102 McKenzie Ave
    Panama City, FL 32401
    (850) 784-7811
    General Practice Attorneys, Attorneys
    Perry & Young
    200 Harrison Ave
    Panama City, FL 32401
    (850) 215-7777
    Civil Litigation & Trial Law Attorneys, Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US