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 Cumming, IA

Benefits of a Limited Liability Company (LLC) in Cumming, IA


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 IA 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 IA 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 Cumming, IA
    Metcalf J Michael
    126 W 2nd St
    Muscatine, IA 52761
    (563) 263-9494
    Attorneys
    Metcalf Brian
    126 W 2nd St
    Muscatine, IA 52761
    (563) 263-9494
    General Practice Attorneys, Attorneys, Legal Service Plans
    Conlon Walter
    126 W 2nd St
    Muscatine, IA 52761
    (563) 263-9494
    General Practice Attorneys, Attorneys
    Muscatine Legal Services
    122 E 2nd St
    Muscatine, IA 52761
    (563) 263-8663
    Attorneys, Legal Service Plans
    Wunder John
    610 Cedar St
    Muscatine, IA 52761
    (563) 263-8525
    Attorneys
    Eichelberger Rosy A
    2206 Lucas St
    Muscatine, IA 52761
    (563) 263-6900
    Attorneys, General Practice Attorneys
    Nepple James A
    216 Sycamore St # 500
    Muscatine, IA 52761
    (563) 264-6840
    Attorneys, General Practice Attorneys
    Hintermeister John
    300 E 2nd St # 300
    Muscatine, IA 52761
    (563) 263-6501
    Attorneys, General Practice Attorneys
    Slota Perry
    455 650th St
    Washta, IA 51061
    (712) 447-6137
    Attorneys
    Kratchmer Vernon E
    500 Main St
    Osage, IA 50461
    (641) 732-5554
    Attorneys, General Practice Attorneys
    Hargrafen William J
    1102 Park Ave
    Muscatine, IA 52761
    (563) 264-5523
    General Practice Attorneys, Attorneys
    Meloy David J
    301 Iowa Ave # 400
    Muscatine, IA 52761
    (563) 264-5000
    Attorneys, Legal Service Plans
    Oppel Curt A
    301 Iowa Ave # 400
    Muscatine, IA 52761
    (563) 264-5000
    General Practice Attorneys, Attorneys, Legal Service Plans
    Axel Joan U
    301 Iowa Ave # 400
    Muscatine, IA 52761
    (563) 264-5000
    Attorneys, Legal Service Plans
    Young Wendy L
    301 Iowa Ave # 400
    Muscatine, IA 52761
    (563) 264-5000
    Attorneys
    Neal Martin
    2757 430th St
    Osage, IA 50461
    (641) 983-4452
    Attorneys
    Skogerson & Maxwell Leckband
    413 Grant St
    Van Meter, IA 50261
    (515) 996-4045
    Attorneys, Legal Service Plans
    Walk Mark L
    515 State St
    Osage, IA 50461
    (641) 732-3796
    Attorneys
    Mc Phail Brian
    631 Main St
    Osage, IA 50461
    (641) 732-3703
    Attorneys, Legal Service Plans
    Shafer William
    204 W State St
    Williamsburg, IA 52361
    (319) 668-2565
    General Practice Attorneys, Attorneys
    Hintermeister John L
    2230 Mulberry Ave
    Muscatine, IA 52761
    (563) 263-2429
    Attorneys
    Allison Linda L
    115 E 2nd St
    Muscatine, IA 52761
    (563) 263-1960
    Attorneys
    Wunder John Law Office
    300 E 2nd St
    Muscatine, IA 52761
    (563) 264-1900
    General Practice Attorneys, Attorneys, Legal Service Plans
    Reidel Thomas G
    300 E 2nd St # 301
    Muscatine, IA 52761
    (563) 264-1900
    Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US