Find More Articles
12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents™
 
Get the Michigan Legal Documents You Need in Only Minutes!
  • Written by expert Attorneys
  • Guaranteed for your State
  • Personalized for your situation
  • Finish and print in minutes!
 Personalize My Document 

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

Benefits of a Limited Liability Company (LLC) in Kalamazoo, 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.

    •  
    Download & Print a Free MI Last Will Personalize This Document
    Page 1
    Page 2
    Page 3
    Page 4
    Page 5
    Page 6
    Page 7
    Page 8
    Page 9
    Page 10
     
    Download & Print a Free MI Living Will Personalize This Document
    Page 1
    Page 2
    Page 3
    Page 4
    Page 5
    Page 6
    Page 7
    Page 8
      Answer Easy
    Questions
    answer simple questions online step by step
    Easy Questions, Instant Documents
    • Finish in Minutes
    • Download Immediately
    • Written by Attorneys
    • 100% Guaranteed
      Get Instant Legal
        Documents™
    Print, save or email your finished legal document immediately!
    Last Will & Testament
    Related Legal Services near Kalamazoo, MI
    Ford & Murphy PC
    119 N Church St # 202
    Kalamazoo, MI 49007
    (269) 342-9900
    Malpractice Law Attorneys,  Attorneys,  Accident & Property Damage Attorneys,  Personal Injury Law A
    Davidoff Bob
    535 S Burdick St
    Kalamazoo, MI 49007
    (269) 342-9530
    Bankruptcy Law Attorneys,  Attorneys,  Bankruptcy Services,  Financial Services
    Anishinabe Craft & Supplies
    2540 E D Ave
    Kalamazoo, MI 49009
    (800) 578-9400
    Attorneys
    Kobayashi, Kenneth Atty
    710 Howard St
    Kalamazoo, MI 49008
    (269) 388-9250
    Accident & Property Damage Attorneys,  Personal Injury Law Attorneys,  Employment Opportunities,  At
    Dietrich & VanderRoest
    834 King Hwy
    Kalamazoo, MI 49001
    (269) 344-9236
    Attorneys,  Estate Planning, Probate, & Living Trusts,  Business Law Attorneys,  Corporation & Par
    Von Eitzen Law Office
    141 E Michigan Ave Suite 201
    Kalamazoo, MI 49007
    (269) 235-9189
    Arbitration Services,  Family Law Attorneys,  Attorneys,  Attorneys Referral & Information Service
    Samuel K Silverman
    1090 N 10th St
    Kalamazoo, MI 49009
    (269) 372-9075
    Attorneys, Social Security & Disability Law Attorneys
    Redmond & Streed
    480 W Lovell St
    Kalamazoo, MI 49007
    (269) 381-9010
    Social Security & Disability Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Accident & Propert
    Crocker Blake D
    151 S Rose St # 900
    Kalamazoo, MI 49007
    (269) 381-8844
    Attorneys
    Lennon Miller O'Connor & Bartosiewicz PLC
    151 S Rose St
    Kalamazoo, MI 49007
    (269) 381-8844
    Attorneys
    Godfrey Lisa A
    137 N Park St
    Kalamazoo, MI 49007
    (269) 344-8830
    Divorce Attorneys, Attorneys, Family Law Attorneys, General Practice Attorneys, Legal Service Plans
    Geoffrey Upshaw
    3010 Lovers Ln
    Kalamazoo, MI 49001
    (269) 343-8399
    General Practice Attorneys, Attorneys, Legal Service Plans
    Lawrence J. Montei P.C.
    5955 W Main St
    Kalamazoo, MI 49009
    (269) 353-8300
    Divorce Attorneys,  Attorneys,  Family Law Attorneys,  Child Custody Attorneys
    Migala Richard I PC
    5937 W Main St
    Kalamazoo, MI 49009
    (269) 353-8200
    Accident & Property Damage Attorneys, Personal Injury Law Attorneys, Attorneys
    Richard L Migala Pc
    6523 Stadium Dr
    Kalamazoo, MI 49009
    (269) 353-8200
    Insurance Attorneys,  Attorneys,  Labor & Employment Law Attorneys,  Personal Injury Law Attorneys
    Deming P
    229 E Michigan Ave
    Kalamazoo, MI 49007
    (269) 382-8080
    International Law Attorneys, Attorneys
    Ward Michael F
    141 E Michigan Ave
    Kalamazoo, MI 49007
    (269) 388-7900
    Attorneys, General Practice Attorneys
    Lilly Terrence J
    151 S Rose St # 600
    Kalamazoo, MI 49007
    (269) 381-7763
    Attorneys, Legal Service Plans
    Svikis Andis
    3018 Oakland Dr
    Kalamazoo, MI 49008
    (269) 349-7692
    Attorneys, Criminal Law Attorneys, Real Estate Attorneys
    Butler Toweson & Payseno PLLC
    202 N Riverview Dr
    Kalamazoo, MI 49004
    (269) 349-7686
    Bankruptcy Services,  Attorneys,  Criminal Law Attorneys,  Debt Adjusters,  Financial Services,  Fam
    Hirsch Thomas John
    471 W South St
    Kalamazoo, MI 49007
    (269) 381-7655
    Criminal Law Attorneys, Attorneys, Legal Service Plans
    Daly, Nicholas J Lewis Reed & Allen
    136 E Michigan Ave # 800
    Kalamazoo, MI 49007
    (269) 388-7600
    Estate Planning Attorneys,  Attorneys,  Tax Attorneys,  Business Law Attorneys,  Real Estate Attorne
    Engels, Robert C - Lewis Reed & Allen Pc
    136 E Michigan Ave
    Kalamazoo, MI 49007
    (269) 388-7600
    Attorneys,  Legal Service Plans,  Labor & Employment Law Attorneys,  Real Estate Attorneys,  Persona
    Keilen Law
    491 West South Street
    Kalamazoo, MI 49007
    (517) 712-7593
    Business Litigation Attorneys, Criminal Law Attorneys, Litigation & Tort Attorneys, Attorneys, Legal
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US