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 96846

Advantages and Disadvantages of a Limited Liability Company (LLC) in Zip Code 96846


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 HI 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 HI 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 96846
Kodani Clyde T
5860 Ahakea St
Kapaa, HI 96746
(808) 822-9196
Attorneys
Kobayashi Joseph N Atty
4506 Lehua St
Kapaa, HI 96746
(808) 822-9000
Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
Cast Ann Conradi
4-484 Kuhio Hwy
Kapaa, HI 96746
(808) 823-8736
Attorneys
Yano Thomas D
65474 Kaahele St
Kapaa, HI 96746
(877) 245-8686
Attorneys, Bankruptcy Law Attorneys
The Adoption Team Hawaii Inc.
4-1177 Kuhio Hwy Ste 113
Kapaa, HI 96746
(888) 823-6188
Adoption Law Attorneys
Law Curtis
1334 Ihona Pl
Kapaa, HI 96746
(808) 822-5794
Attorneys
Timothy Tobin
4-1191 Kuhio Hwy Ste B
Kapaa, HI 96746
(808) 822-5529
Attorneys, Legal Service Plans
Legal Document Express
4-901 Kuhio Hwy Ste G
Kapaa, HI 96746
(808) 822-5115
Attorneys
Swinburnson Kurt
6474 Kaahele St
Kapaa, HI 96746
(808) 821-1922
Attorneys,  Family Law Attorneys,  Bankruptcy Services,  Management Consultants,  Legal Service Plan
Zahaby Jon A
6645 Waipouli Rd
Kapaa, HI 96746
(808) 346-1328
Attorneys
Dennemeyer Caren
5784 Lauloa Pl
Kapaa, HI 96746
(808) 822-0258
Attorneys
Jimenez Ryan E
4558 Kukui St
Kapaa, HI 96746
(808) 822-0123
Attorneys,  Landlord & Tenant Attorneys,  Real Estate Attorneys,  Legal Service Plans,  Family Law A
Grinpas Robert M
6186 Helena Ln
Kapaa, HI 96746
(808) 822-0019
Attorneys, Legal Service Plans
Linda Ef Lach Law Office
6525 Kuamoo Rd
Kapaa, HI 96746
(808) 823-0011
Adoption Law Attorneys,  Attorneys,  Family Law Attorneys,  Adoption Services
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US