12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
 
FINANCIAL & MARITAL

Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
 

Advantages and Disadvantages of a Limited Liability Company (LLC) in Zip Code 70375

Advantages and Disadvantages of a Limited Liability Company (LLC) in Zip Code 70375


Grit is often the single-most predictor of success.
 
- Jonah Lehrer


A Limited Liability Company (LLC) is a legal business entity that combines the liability protection of a corporation, the operating flexibility of a Partnership, and the tax benefits of a sole proprietorship. Though the rules for forming an LLC vary by state, it is a popular option for many start-up businesses.

Advantages:

Limited Personal Liability and Exposure

One advantage of an LLC is the limited liability shield, which protects the personal assets of its members. Creditors, typically, cannot hold members personally responsible for the debts and liabilities of the business. Members can only be liable to the extent of their business investment.

Pass-through Taxation

Though there are an array of tax options for a Limited Liability Company; an LLC is generally treated as a "pass-through" entity. Profits and losses pass through the business to the members and are taxed at the personal level. The business itself is not taxed. Reporting is done on members' individual income tax returns. No double taxation with both the company and the owner(s) paying taxes on the earnings of the business.

Operational Flexibility & Simplicity

An LLC is much less formal than a corporation. Record keeping and administrative procedures are not as onerous. There are no quarterly and annual meetings, or tax filings. Neither is there a board of directors.

Legitimacy

Registering a company as an LLC adds credibility to a business, and can help in brand building and marketing to potential clients and suppliers. In addition, the company can enter into contracts on its own, and also acquire property.

Disadvantages:

Higher Fees

An LLC typically pays higher filing fees compared to some other business entities or sole proprietorships. Additionally, some states require annual renewal fees or franchise taxes. It is difficult for an LLC to attract additional investment because the company does not have the ability to issue stocks and bonds. Members have to finance its business activities, or take in private investors. Getting a loan can be tough, especially for small and start-up companies. The company may have to use its business, or personal, assets to guarantee business loans.

Fewer fringe benefits

Employees of an LLC who receive fringe benefits, for example, medical insurance and parking, must treat these benefits as taxable income. This is also true for employees who own more than 2% of an S-corporation. However, employees of a C-corporation do not have to report fringe benefits as taxable income.
 
Personalize & Print a Free LA 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 LA 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 Zip Code 70375
Slaid Jack W
28 Reynolds St
Springhill, LA 71075
(318) 539-6511
Attorneys
Stewart Ken
5681 Commerce St
Saint Francisville, LA 70775
(225) 635-6006
Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
Picou, Sydney
11545 Ferdinand St
Saint Francisville, LA 70775
(225) 635-5832
Attorneys, Legal Service Plans
Notary Direct
3008 E Judge Perez Dr
Meraux, LA 70075
(504) 271-5000
Attorneys
West Feliciana Parish Of
11651 Ferdinand St
Saint Francisville, LA 70775
(225) 635-4612
County & Parish Government,  Attorneys,  Police Departments,  Government Offices
Wray & Pierce LLP
10182 Weevil St
Saint Francisville, LA 70775
(225) 635-3920
Construction Law Attorneys, Attorneys
Hesse & Butterworth LLC
11729 Ferdinand St
Saint Francisville, LA 70775
(225) 635-3839
Attorneys,  Personal Injury Law Attorneys,  Litigation & Tort Attorneys,  Real Estate Attorneys,  Co
Diane Blanchard Consulting Inc
10587 Goldilocks Ln W
Saint Francisville, LA 70775
(225) 635-3327
Attorneys Referral & Information Service
Kilbourne & Dart
4782 Prosperity St
Saint Francisville, LA 70775
(225) 635-3291
General Practice Attorneys, Attorneys, Legal Service Plans
TNT Investigations
3120 Mayflower Street
Meraux, LA 70075
(504) 301-2933
Civil Litigation & Trial Law Attorneys, Private Investigators & Detectives, Divorce Assistance, Crim
Shane P Landry
12216 Jackson Rd
Saint Francisville, LA 70775
(225) 635-2728
Attorneys
McConnell & Slattery
121 S Main St
Springhill, LA 71075
(318) 539-2561
Attorneys
Slattery Jr John B
121 S Main St
Springhill, LA 71075
(318) 539-2561
Attorneys
Smith & Jacobs APLC
101 N Main St
Springhill, LA 71075
(318) 539-2557
Attorneys
Andrew D'aquila Law Firm
10182 Weevil St
Saint Francisville, LA 70775
(225) 635-2020
General Practice Attorneys, Attorneys, Legal Service Plans
Willis Daniel K
11850 Ferdinand St
Saint Francisville, LA 70775
(800) 256-1977
Attorneys
Marais LLP
15560 Gore Rd
Saint Francisville, LA 70775
(225) 634-0700
Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US