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 Kailua, HI

Benefits of a Limited Liability Company (LLC) in Kailua, HI


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 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 Kailua, HI
    Tribbey Carol A
    354 Uluniu St # 305
    Kailua, HI 96734
    (808) 263-8637
    Attorneys,  Family Law Attorneys,  Legal Service Plans,  Bankruptcy Law Attorneys
    Kanetake Stanley T
    228 Kuulei Rd
    Kailua, HI 96734
    (808) 261-7979
    Attorneys, Family Law Attorneys, Landlord & Tenant Attorneys
    Lawyer Referral All America & Kailua
    111 Hekili St
    Kailua, HI 96734
    (800) 876-7204
    Attorneys
    Mc Gehee Elsa F M
    40 Aulike St # 314
    Kailua, HI 96734
    (808) 263-6900
    Attorneys
    Kishimoto Mari Atty
    40 Aulike St Ste 314
    Kailua, HI 96734
    (808) 263-6900
    Attorneys, Legal Service Plans
    Hartley Steven
    40 Aulike St # 314
    Kailua, HI 96734
    (808) 263-6900
    Attorneys
    Hartley & McGehee A Limited Liability Law Partnership
    40 Aulike St Suite 314
    Kailua, HI 96734
    (808) 263-6900
    Adoption Law Attorneys,  Attorneys,  Family Law Attorneys,  Divorce Attorneys
    Chong Jerry Y
    1257 Maleko St
    Kailua, HI 96734
    (808) 262-6631
    Attorneys
    Albu Ronald
    354 Uluniu St # 205A
    Kailua, HI 96734
    (808) 266-6200
    Attorneys, General Practice Attorneys, Legal Service Plans
    Albu Kathryn M
    354 Uluniu St # 205A
    Kailua, HI 96734
    (808) 266-6200
    General Practice Attorneys, Attorneys, Legal Service Plans
    Aluli Yuklin
    415C Uluniu St
    Kailua, HI 96734
    (808) 262-5900
    Probate Law Attorneys,  Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Real Estate Attorne
    Mattos Keaookalani
    415 Uluniu St # C
    Kailua, HI 96734
    (808) 262-5900
    Attorneys
    Willams Amber Atty
    415 Uluniu St Ste C
    Kailua, HI 96734
    (808) 262-5900
    Attorneys, Legal Service Plans
    Trial Run
    PO Box 1486
    Kailua, HI 96734
    (808) 384-5879
    Attorneys
    Winer Meheula & Devens Atty
    970 N Kalaheo Ave # A307
    Kailua, HI 96734
    (808) 254-5855
    Attorneys, General Practice Attorneys, Legal Service Plans
    Indie Michael T
    970 N Kalaheo Ave # C105
    Kailua, HI 96734
    (808) 254-5550
    Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Corporation & Partnership Law Attorneys,  B
    Knowlton Douglas H Law Offices
    1179 Lunahana Pl
    Kailua, HI 96734
    (808) 261-4386
    Attorneys, General Practice Attorneys, Legal Service Plans
    Dwyer John R Jr Atty
    1639 Ulueo St
    Kailua, HI 96734
    (808) 262-4379
    Attorneys
    Mattice Dale K
    PO Box 1503
    Kailua, HI 96734
    (808) 256-4298
    Attorneys
    Jackson Elizabeth H
    417 Uluniu St # F
    Kailua, HI 96734
    (808) 599-3838
    Attorneys
    Jervis Gerry
    354 Uluniu St # 100
    Kailua, HI 96734
    (808) 262-2828
    Attorneys
    Gerard Jervis
    354 Uluniu St Ste 100
    Kailua, HI 96734
    (808) 262-2828
    Attorneys, General Practice Attorneys, Legal Service Plans
    Tomar Libby E
    438 Uluniu St # A
    Kailua, HI 96734
    (808) 262-2800
    Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Real Estate Buyer Brokers,  General Practic
    Tomar Libby
    438 Uluniu St # A
    Kailua, HI 96734
    (808) 262-2800
    Attorneys, Wills, Trusts & Estate Planning Attorneys, Real Estate Buyer Brokers, General Practice At
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US