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 Madison, IN

Benefits of a Limited Liability Company (LLC) in Madison, 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 Madison, IN
    Prime & Flores Law Office
    112 E 3rd St # 200
    Madison, IN 47250
    (812) 265-9020
    Insurance Attorneys,  Attorneys,  Criminal Law Attorneys,  Personal Injury Law Attorneys,  Legal Ser
    Barlow Robert L Atty Ii
    505 W Main St
    Madison, IN 47250
    (812) 265-6590
    Attorneys
    Dattilo Thomas M
    311 E Main St
    Madison, IN 47250
    (812) 265-6355
    Attorneys,  Criminal Law Attorneys,  Accident & Property Damage Attorneys,  General Practice Attorne
    Castor & Hershberger PC
    320 Walnut St
    Madison, IN 47250
    (812) 265-6110
    Bankruptcy Law Attorneys,  Attorneys,  Real Estate Attorneys,  General Practice Attorneys,  Legal Se
    Kendall-Sage Heidi
    1 W 6th St
    Madison, IN 47250
    (812) 273-5230
    Estate Planning Attorneys,  Attorneys,  Wills, Trusts & Estate Planning Attorneys,  General Practic
    Jenner Auxier & Pattison Attorneys
    508 E Main St
    Madison, IN 47250
    (812) 265-5132
    Social Security & Disability Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Social Security Se
    Alcorn Merritt K
    148 Fairmount Dr
    Madison, IN 47250
    (812) 265-4838
    Attorneys
    Goebel Law Office
    428 Jefferson St
    Madison, IN 47250
    (812) 801-4670
    Personal Injury Law Attorneys,  Accident & Property Damage Attorneys,  Wrongful Death Attorneys,  At
    Colussi Joseph A
    427 E Main St
    Madison, IN 47250
    (812) 265-4455
    Attorneys,  Business Bankruptcy Law Attorneys,  General Practice Attorneys,  Bankruptcy Law Attorney
    Barlow Law Office
    201 E Main St
    Madison, IN 47250
    (812) 273-4440
    Insurance Attorneys,  Attorneys,  Social Security & Disability Law Attorneys,  Business Law Attorney
    Prime William Attorney
    2001 Hycliff Ct
    Madison, IN 47250
    (812) 273-4353
    Attorneys
    Schnaitter Spencer J
    310 Jefferson St
    Madison, IN 47250
    (812) 265-3628
    Attorneys, General Practice Attorneys, Legal Service Plans
    Walro Michael J
    426 E Main St
    Madison, IN 47250
    (812) 265-3617
    Attorneys, General Practice Attorneys
    Collins Lonnie D
    307 Jefferson St
    Madison, IN 47250
    (812) 265-3616
    Attorneys,  Family Law Attorneys,  Social Security & Disability Law Attorneys,  Accident & Property
    Wynn Mark
    307 Jefferson St
    Madison, IN 47250
    (812) 265-3616
    Attorneys, General Practice Attorneys
    Prime William
    112 E 3rd St # 100
    Madison, IN 47250
    (812) 265-3433
    Wills, Trusts & Estate Planning Attorneys, Attorneys, Criminal Law Attorneys, Family Law Attorneys,
    Prime & Flores Injury Trial
    112 E 3rd St
    Madison, IN 47250
    (812) 273-3003
    Attorneys,  Accident & Property Damage Attorneys,  General Practice Attorneys,  Legal Service Plans
    Hensley Michael J
    120 Cherry Trce
    Madison, IN 47250
    (812) 273-2837
    Attorneys, Legal Service Plans
    Goebel Law Office
    606 E Main St
    Madison, IN 47250
    (812) 265-2782
    General Practice Attorneys, Attorneys, Legal Service Plans
    Goebel Law
    428 Jefferson St
    Madison, IN 47250
    (812) 274-2777
    Attorneys, General Practice Attorneys, Personal Injury Law Attorneys, Wrongful Death Attorneys, Acci
    Law Jeremy
    4199 N 500 W
    Madison, IN 47250
    (812) 273-2649
    Attorneys
    Joas & Stotts
    309 Jefferson St
    Madison, IN 47250
    (812) 265-1616
    Social Security & Disability Law Attorneys, Attorneys, Family Law Attorneys, Adoption Law Attorneys,
    Joas & Stotts
    413 E Main St
    Madison, IN 47250
    (812) 265-1616
    Divorce Attorneys,  Attorneys,  Family Law Attorneys,  General Practice Attorneys
    Eckert Law Firm
    606 E Main St
    Madison, IN 47250
    (812) 265-1606
    Attorneys,  Business Law Attorneys,  Real Estate Attorneys,  Personal Injury Law Attorneys,  Litigat
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US