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 Mishawaka, IN

Benefits of a Limited Liability Company (LLC) in Mishawaka, 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 Mishawaka, IN
    Lopata Marvin
    320 W 4th St
    Mishawaka, IN 46544
    (574) 273-9976
    Civil Litigation & Trial Law Attorneys, Attorneys
    Mick Jr R Wyatt
    400 Lincolnway E
    Mishawaka, IN 46544
    (574) 255-9616
    Attorneys, Legal Service Plans
    Bingham & Loughlin PC
    400 Lincolnway E
    Mishawaka, IN 46544
    (574) 255-9616
    Wills, Trusts & Estate Planning Attorneys,  Attorneys,  Legal Service Plans,  Business Law Attorney
    Burke James E
    549 Lincolnway W
    Mishawaka, IN 46544
    (574) 255-8979
    Attorneys
    Ricker William W
    13655 Willow Creek Dr
    Mishawaka, IN 46545
    (574) 259-8764
    General Practice Attorneys
    Bonewitz Richard D Atty
    520 Park Place Ct
    Mishawaka, IN 46545
    (574) 233-6851
    Attorneys
    Majewski Chrisitne
    12415 McKinley Hwy
    Mishawaka, IN 46545
    (574) 367-6510
    General Practice Attorneys, Attorneys, Legal Service Plans
    Hostetler Steven L
    420 Lincolnway W
    Mishawaka, IN 46544
    (574) 256-5660
    Attorneys
    Trippel Michael A
    420 Lincolnway W
    Mishawaka, IN 46544
    (574) 256-5660
    Attorneys
    Thorne Grodnik LLP
    420 Lincolnway W
    Mishawaka, IN 46544
    (574) 256-5660
    Attorneys, Wills, Trusts & Estate Planning Attorneys, Legal Service Plans
    Schindler, Olso, & Currey
    122 S Mill St
    Mishawaka, IN 46544
    (574) 259-5461
    Estate Planning Attorneys,  Attorneys,  Probate Law Attorneys,  Wills, Trusts & Estate Planning Att
    Fox Kristin R
    400 Lincolnway E
    Mishawaka, IN 46544
    (574) 258-5400
    Attorneys, Civil Litigation & Trial Law Attorneys, Business Litigation Attorneys, Legal Service Plan
    Verheye, Julie P
    216 S Race St
    Mishawaka, IN 46544
    (574) 213-5333
    Wills, Trusts & Estate Planning Attorneys,  Attorneys,  Family Law Attorneys,  Divorce Attorneys,  
    Alternative Legal Svc
    1802 Silverleaf Ct
    Mishawaka, IN 46544
    (574) 252-5180
    Paralegals
    Bradley Joseph
    54724 Merrifield Dr
    Mishawaka, IN 46545
    (574) 234-5091
    Attorneys
    Filippello, George
    305 E 3rd St
    Mishawaka, IN 46544
    (574) 256-5003
    Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Legal Service Plans,  Bankruptcy Law Att
    Laird John M
    54731 Little Flower Trl
    Mishawaka, IN 46545
    (574) 258-4983
    Attorneys
    Kalamaros, Timothy E
    1117 Lincolnway W
    Mishawaka, IN 46544
    (574) 257-4802
    Attorneys,  Probate Law Attorneys,  Wills, Trusts & Estate Planning Attorneys,  General Practice At
    Johnson Jeffery A
    4100 Edison Lakes Pkwy # 100
    Mishawaka, IN 46545
    (574) 243-4100
    Attorneys, Legal Service Plans
    Walton E Spencer Jr
    4100 Edison Lakes Pkwy
    Mishawaka, IN 46545
    (574) 243-4100
    Attorneys, Legal Service Plans
    Nugent Jr Richard F
    4100 Edison Lakes Pkwy # 100
    Mishawaka, IN 46545
    (574) 243-4100
    Attorneys
    May Oberfell Lorber
    4100 Edison Lakes Pkwy
    Mishawaka, IN 46545
    (574) 243-4100
    Divorce Attorneys,  Attorneys,  Legal Service Plans,  Business Law Attorneys,  Real Estate Attorneys
    Bent David V PC
    320 W 4th St
    Mishawaka, IN 46544
    (574) 255-3680
    Attorneys, Legal Service Plans
    Rieff Law Office
    415 Lincolnway W
    Mishawaka, IN 46544
    (574) 255-2870
    Mediation Services,  Personal Injury Law Attorneys,  Attorneys,  Wrongful Death Attorneys,  Medical
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US