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 Greenwood, IN

Benefits of a Limited Liability Company (LLC) in Greenwood, IN


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 IN 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 IN 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 Greenwood, IN
    Reames, John M PC
    1638 W Smith Valley Rd
    Greenwood, IN 46142
    (317) 882-9839
    Attorneys, Civil Litigation & Trial Law Attorneys, General Practice Attorneys
    Money R Lee
    310 W Main St
    Greenwood, IN 46142
    (317) 865-9607
    Attorneys, General Practice Attorneys
    Lowe Brian K
    1648 Fry Rd Ste A
    Greenwood, IN 46142
    (317) 885-9100
    General Practice Attorneys, Attorneys
    Kessler Douglas W Atty
    1648 Fry Rd Ste A
    Greenwood, IN 46142
    (317) 885-9100
    General Practice Attorneys, Attorneys
    Smart & Kessler
    1648 Fry Rd
    Greenwood, IN 46142
    (317) 885-9100
    Attorneys, Probate Law Attorneys, Wills, Trusts & Estate Planning Attorneys
    Whitten Chris
    313 Western Blvd # K
    Greenwood, IN 46142
    (317) 885-8665
    Attorneys, General Practice Attorneys
    Bankruptcy Jon Brown
    3209 W Smith Valley Rd
    Greenwood, IN 46142
    (317) 245-8605
    Attorneys, Bankruptcy Services, Bankruptcy Law Attorneys
    Vander Luitgar Tom
    299 W Main St
    Greenwood, IN 46142
    (317) 881-7575
    Attorneys
    Van Valer Law Firm
    299 W Main St
    Greenwood, IN 46142
    (317) 881-7575
    Attorneys, Civil Litigation & Trial Law Attorneys, Real Estate Attorneys, Litigation & Tort Attorney
    Heider Kenneth W
    435 E Main St # 125
    Greenwood, IN 46143
    (317) 881-7253
    Attorneys, General Practice Attorneys
    Roscoe Stovall Jr & Assoc
    2 W Main St
    Greenwood, IN 46142
    (317) 881-6908
    Divorce Attorneys, Family Law Attorneys
    Brown Dennis K
    374 S Madison Ave
    Greenwood, IN 46142
    (317) 888-6862
    Attorneys,  Social Security & Disability Law Attorneys,  Accident & Property Damage Attorneys,  Lega
    Williams Law Office PC
    125 Airport Pkwy Ste 130
    Greenwood, IN 46143
    (317) 859-6363
    General Practice Attorneys, Attorneys
    Brown Jon
    3209 W Smith Valley Rd Ste 242
    Greenwood, IN 46142
    (317) 884-5080
    Bankruptcy Law Attorneys,  Attorneys,  Business Bankruptcy Law Attorneys,  General Practice Attorney
    Attorney General
    35 S Park Blvd
    Greenwood, IN 46143
    (317) 883-4520
    Attorneys
    Gantz D Charles
    944 Fry Rd
    Greenwood, IN 46142
    (317) 882-2901
    Attorneys
    A New Horizon Renovations LLP
    2089 Meyer St
    Greenwood, IN 46143
    (317) 893-2784
    Attorneys,  Roofing Contractors,  Altering & Remodeling Contractors,  Flooring Contractors,  Windows
    Hudspeth Law Office
    704 S State Road 135 Ste D
    Greenwood, IN 46143
    (317) 534-2733
    General Practice Attorneys, Attorneys
    Green James R
    1700 W Smith Valley Rd Ste B6
    Greenwood, IN 46142
    (317) 888-2683
    Attorneys
    Wilson, John Phil - Wilson Green Cecere
    1700 W Smith Valley Rd Ste B6
    Greenwood, IN 46142
    (317) 888-2683
    Criminal Law Attorneys, Attorneys, Legal Service Plans
    Sears Mark W
    315 US Highway 31 S
    Greenwood, IN 46142
    (317) 882-2011
    Bankruptcy Law Attorneys,  Adoption Law Attorneys,  Bankruptcy Services,  Attorneys,  Financial Serv
    Ballentine John W
    977 Santa Maria Dr
    Greenwood, IN 46143
    (317) 535-1933
    Attorneys
    Geraci Law
    7007 US Highway 31 S
    Greenwood, IN 46143
    (888) 459-1909
    Bankruptcy Law Attorneys, Attorneys, Bankruptcy Services
    Peter Francis Geraci
    7007 US Highway 31 S
    Greenwood, IN 46143
    (888) 456-1909
    Bankruptcy Law Attorneys, Attorneys, Bankruptcy Services
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US