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!
 
 

Orientation to Limited Liability Companies (LLCs) in Zip Code 04737

Orientation to Limited Liability Companies (LLCs) in Zip Code 04737


I've missed more than 9,000 shots in my career. I've lost almost 300 games. 26 times I've been trusted to take the game winning shot and missed. I've failed over and over and over again in my life and that is why I succeed.
 
- Michael Jordan


A Limited Liability Company (LLC), just like a corporation, offers protection from personal liability for business debts. But, unlike a corporation, which pays its own taxes, an LLC is a pass-through tax entity in which the profits and losses pass-through its owners who report it on their personal tax returns.

How to Form an LLC

  • File "Articles of Organization" with your state government including the name, address, and phone number of the business, and the name of the person who is the "registered agent" of the company. Depending on the state, the names of all LLC members are sometimes requested.
  • Create a written LLC operating agreement. This is a crucial document because it includes the rights and responsibilities of the LLC members. It can also include the percentage interest and the shares of profits of the members.
  • Main Features of an LLC



    Limited Personal Liability

    All LLC members are spared from personal liability for business claims and debts. A creditor cannot go after them and demand payment from their personal assets. The assets of the LLC are used to pay off debts, and the only thing members stand to lose is their investment in the business.

    Exceptions to Limited Personal Liability

    Limited personal liability can be enjoyed by an LLC when doing business transactions, but this protection is not fixed. This particular downside also applies to corporations. An LLC owner can be held liable if he/she:

  • Intentionally does something fraudulent, illegal, or reckless that causes harm to the company or to someone else.
  • Fails to pay taxes withheld from employees' wages.
  • Personally and directly injures someone.
  • Personally guarantees a bank loan or a business debt on which the LLC defaults.
  • Treats the LLC as an extension of his/her personal affairs rather than as a separate legal entity.


  • Business Protection

    Your personal assets can be protected by a good liability insurance which is not possible with a limited liability protection. If you are practicing your craft and accidentally injure someone, your liability insurance policy will cover you. In the event of a court proceeding, your insurance can protect your personal assets if the limited liability status is disregarded by the court.

    LLC Taxes

    An LLC is a "pass-through" entity where the business income passes through the business to the LLC members who will report their share of profits or losses on their individual income tax returns. All LLC members make a quarterly estimated tax payment to the IRS.

    LLC Management

    Member management means participating equally in the management of business. Manager management refers to designating one or more owners, or even outsiders, to take responsibility for managing the LLC. In a manager-managed LLC, only those named "manager" can vote with regards to management decisions and act as an agent of the LLC.


    Ending an LLC

    Depending on the laws of your state, or as indicated in the operating agreement, when one member leaves, the LLC dissolves. The remaining members will be responsible for meeting the business obligations left behind, pay the debts, and divide the remaining assets and profits among themselves. The decision to create a new LLC with the remaining members can be discussed. In order to avoid this kind of abrupt ending, your LLC operating agreement can include a "buy-sell" or "buyout" clause with guidelines on what will happen if a member decides to leave to pursue other interests, retires, or dies.

     
    Personalize & Print a Free ME 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 ME 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 04737
    Spencer David M
    654 Wiscasset Rd
    Boothbay, ME 04537
    (207) 633-8383
    Attorneys
    Yarmosh Linda
    654 Wiscasset Rd
    Boothbay, ME 04537
    (207) 633-6700
    Attorneys
    Stevens Craig A
    43 Western Ave
    Fairfield, ME 04937
    (207) 453-5900
    Attorneys, General Practice Attorneys
    Tavenner Thomas W
    654 Wiscasset Rd
    Boothbay, ME 04537
    (207) 633-5153
    Attorneys
    The Bodywork Shop
    12 Cottage St
    Fairfield, ME 04937
    (207) 453-4947
    General Practice Attorneys
    Kingman Pratt A
    24 Smith St
    Fryeburg, ME 04037
    (207) 935-3298
    Attorneys
    Holden Craig L
    652 Main St
    Fryeburg, ME 04037
    (207) 935-3239
    Attorneys, Legal Service Plans
    Hastings David R
    955 Main St
    Fryeburg, ME 04037
    (207) 935-3175
    Attorneys
    Nash Mary
    163 Main St
    Fryeburg, ME 04037
    (207) 935-3122
    Attorneys
    Andrew Ketterer Law Firm
    60 Main St
    Fairfield, ME 04937
    (207) 634-2800
    Attorneys, General Practice Attorneys, Legal Service Plans
    Malia Peter J
    376 Main St
    Fryeburg, ME 04037
    (207) 935-2061
    Attorneys
    Hastings Law Office
    376 Main St
    Fryeburg, ME 04037
    (207) 935-2061
    Attorneys, General Practice Attorneys, Legal Service Plans
    Hastings David
    PO Box 290
    Fryeburg, ME 04037
    (207) 935-2061
    Attorneys
    Gould Bonnis S Atty
    376 Main St
    Fryeburg, ME 04037
    (207) 935-2061
    Attorneys
    Carter Shelley P. Law
    110 Portland St
    Fryeburg, ME 04037
    (207) 935-1950
    Attorneys, Criminal Law Attorneys, Family Law Attorneys, Divorce Attorneys, Real Estate Attorneys, G
    Carter Shelley P. Law
    110 Portland St
    Fryeburg, ME 04037
    (207) 935-1950
    Attorneys, Criminal Law Attorneys, Family Law Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US