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 Kona, HI

Benefits of a Limited Liability Company (LLC) in Kailua Kona, 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 Kona, HI
    Kalman Victoria L
    165 Hualalai Rd # 201
    Kailua Kona, HI 96740
    (808) 334-9888
    Attorneys
    Aloha Will & Trust
    74-5565 Luhia St # Ca2
    Kailua Kona, HI 96740
    (808) 326-9876
    Attorneys, Legal Service Plans
    Fagundes Iii, Joseph Kona Law
    77-6409 Leilani St
    Kailua Kona, HI 96740
    (808) 326-9831
    Insurance Attorneys,  Attorneys,  Civil Litigation & Trial Law Attorneys,  Business Law Attorneys
    Fagundes III Joseph
    PO Box 2609
    Kailua Kona, HI 96745
    (808) 326-9831
    Admiralty & Maritime Law Attorneys, Attorneys
    Marx Robert P Law Offices
    75-165 Hualalai Rd Ste 201
    Kailua Kona, HI 96740
    (808) 329-8587
    Attorneys, General Practice Attorneys, Legal Service Plans
    Gregg Jr Frederick W
    76-211 Royal Poinciana Dr # A
    Kailua Kona, HI 96740
    (808) 329-7720
    Attorneys, Legal Service Plans
    Krueger Dennis
    75-5722 Kuakini Hwy Ste 208
    Kailua Kona, HI 96740
    (808) 326-7654
    Attorneys, Legal Service Plans
    Maile Nakoa Shawn
    75-167 Kalani St # 105
    Kailua Kona, HI 96740
    (808) 324-7575
    Attorneys, Legal Service Plans
    Brooks Tom Porter & Quitiquit
    75-1000 Henry St Ste 208
    Kailua Kona, HI 96740
    (808) 326-7300
    Attorneys, General Practice Attorneys
    Quitiquit Bud
    75-1000 Henry St # 208
    Kailua Kona, HI 96740
    (808) 326-7300
    Attorneys
    Gleed Darl C
    75-5995 Kuakini Hwy Ste 432
    Kailua Kona, HI 96740
    (808) 329-6600
    Attorneys,  Business Law Attorneys,  General Practice Attorneys,  Legal Service Plans,  Estate Plann
    Start Up Hawaii
    75-5995 Kuakini Hwy Ste 432
    Kailua Kona, HI 96740
    (808) 329-6600
    Attorneys
    Kwiat Jason R Atty
    75-1000 Henry St Ste 209
    Kailua Kona, HI 96740
    (808) 329-6464
    Attorneys, Legal Service Plans
    Haitsuka, Edmund W - Carlsmith Ball
    75-1000 Henry St # 209
    Kailua Kona, HI 96740
    (808) 329-6464
    Attorneys, Legal Service Plans
    Ian L Mattoch Law Offices
    75-127 Lunapule Rd Ste 15B
    Kailua Kona, HI 96740
    (808) 769-6039
    Attorneys,  Accident & Property Damage Attorneys,  General Practice Attorneys,  Legal Service Plans,
    Cades Schutte
    75-170 Hualalai Rd Ste B303
    Kailua Kona, HI 96740
    (808) 329-5811
    Attorneys, Real Estate Attorneys, Legal Service Plans
    Higashi, Lynn H - Cades Schutte
    75-170 Hualalai Rd Ste B303
    Kailua Kona, HI 96740
    (808) 329-5811
    Attorneys, Criminal Law Attorneys, Accident & Property Damage Attorneys, Landlord & Tenant Attorneys
    Vitousek III Roy
    75-170 Hualalai Rd Ste B303
    Kailua Kona, HI 96740
    (808) 329-5811
    Attorneys, General Practice Attorneys
    Tuhy Alan H
    75-240 Nani Kailua Dr # 11
    Kailua Kona, HI 96740
    (808) 329-5678
    Attorneys, General Practice Attorneys
    Gallup Wally
    75-5591 Palani Rd Ste 3007
    Kailua Kona, HI 96740
    (808) 329-5014
    Attorneys, Legal Service Plans
    Hawaii State Government Attorney General Department
    75-5722 Kuakini Hwy Ste 215
    Kailua Kona, HI 96740
    (808) 327-4953
    Attorneys, State Government
    Jung Francis L
    75-170 Hualalai Rd Ste D214
    Kailua Kona, HI 96740
    (808) 326-4852
    Attorneys,  Corporation & Partnership Law Attorneys,  Civil Litigation & Trial Law Attorneys,  Busin
    Jung & Vassar PC A Law Corp
    75-170 Hualalai Rd Ste D214
    Kailua Kona, HI 96740
    (808) 326-4852
    Attorneys, General Practice Attorneys, Legal Service Plans
    Smith David E
    78-6800 Alii Dr # 39
    Kailua Kona, HI 96740
    (808) 322-4766
    Attorneys, Probate Law Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US