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 Grand Haven, MI

Benefits of a Limited Liability Company (LLC) in Grand Haven, MI


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 MI 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 MI 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 Grand Haven, MI
    Robbins Robert E PC
    1475 Robbins Rd
    Grand Haven, MI 49417
    (616) 846-9400
    Real Estate Attorneys, Attorneys, Legal Service Plans
    Paul C Pfister The
    17 N 4th St
    Grand Haven, MI 49417
    (616) 850-9100
    Wills, Trusts & Estate Planning Attorneys,  Attorneys,  Accident & Property Damage Attorneys,  Pers
    Legatz Joseph C
    512 Washington Ave
    Grand Haven, MI 49417
    (616) 846-8860
    Criminal Law Attorneys, Attorneys, Legal Service Plans
    Lauren Dyye Attorney & Counselor at Law
    300 Washington Ave Suite 250
    Grand Haven, MI 49417
    (517) 881-7267
    Criminal Law Attorneys, Family Law Attorneys, Juvenile Law Attorneys, Landlord & Tenant Attorneys, T
    Cotner Roger PC
    220 Franklin Ave
    Grand Haven, MI 49417
    (616) 846-7153
    Tax Attorneys,  Attorneys,  Business Law Attorneys,  Bankruptcy Law Attorneys,  Estate Planning Atto
    Varnum Llp
    1600 S Beacon Blvd
    Grand Haven, MI 49417
    (616) 846-7100
    Corporation & Partnership Law Attorneys, Estate Planning Attorneys, Attorneys
    Winter Paul L
    250 Washington Ave
    Grand Haven, MI 49417
    (616) 844-6989
    Probate Law Attorneys, Attorneys, Wills, Trusts & Estate Planning Attorneys, Business Law Attorneys
    Lampe & Piper
    509 Franklin Ave
    Grand Haven, MI 49417
    (616) 223-6766
    Wills, Trusts & Estate Planning Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorne
    Peter James Armstrong Jr., Attorney
    212 1/2 Washington Ave Suite 2
    Grand Haven, MI 49417
    (616) 402-6294
    Family Law Attorneys, General Practice Attorneys
    Garrett Law Offices
    Harborfront Place Suite 321
    Grand Haven, MI 49417
    (616) 604-4888
    Business Bankruptcy Law Attorneys
    Douglas T Johnson & Assoc
    101 Washington Avenue, Suite 152
    Grand Haven, MI 49417
    (616) 604-4850
    Paralegals, Taxes-Consultants & Representatives, Tax Return Preparation-Business, Legal Document Ass
    Burda Law Office PLC
    300 Washington Ave
    Grand Haven, MI 49417
    (616) 846-4001
    General Practice Attorneys, Attorneys, Legal Service Plans
    Rhoades McKee
    250 Washington Ave
    Grand Haven, MI 49417
    (616) 235-3500
    Attorneys,  Legal Service Plans,  Real Estate Attorneys,  Tax Attorneys,  Family Law Attorneys,  Lab
    Bregman & Welch
    212 Washington Ave
    Grand Haven, MI 49417
    (616) 846-3145
    Employment Discrimination Attorneys,  Attorneys,  Discrimination & Civil Rights Law Attorneys,  Labo
    White Randall A
    100 N 3rd St
    Grand Haven, MI 49417
    (616) 842-3030
    Attorneys, Legal Service Plans
    Scholten Fant
    100 N 3rd St
    Grand Haven, MI 49417
    (616) 842-3030
    Attorneys, General Practice Attorneys
    Van Tubergen, Michael - Van Tubergen & Truetler P
    114 N 3rd St
    Grand Haven, MI 49417
    (616) 844-3000
    Business Law Attorneys, Attorneys, Corporation & Partnership Law Attorneys, General Practice Attorne
    Zitta Robert J
    300 Washington Ave
    Grand Haven, MI 49417
    (616) 842-1470
    Corporation & Partnership Law Attorneys,  Attorneys,  Family Law Attorneys,  Wills, Trusts & Estate
    Scheuerle & Zitta LLP
    300 Washington Ave
    Grand Haven, MI 49417
    (616) 842-1470
    Probate Law Attorneys,  Attorneys,  Family Law Attorneys,  General Practice Attorneys
    Risko Mike
    250 Washington Ave
    Grand Haven, MI 49417
    (616) 847-1400
    General Practice Attorneys, Attorneys
    Potter Danielle A
    233 Washington Ave # 208
    Grand Haven, MI 49417
    (616) 935-1211
    General Practice Attorneys, Attorneys, Legal Service Plans
    McNeil Douglas J
    250 Washington Ave
    Grand Haven, MI 49417
    (616) 847-1000
    Insurance Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US