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 Kincheloe, MI

Benefits of a Limited Liability Company (LLC) in Kincheloe, 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 Kincheloe, MI
    Mortimer Law Firm
    514 Munson Ave
    Traverse City, MI 49686
    (231) 933-9999
    Social Security & Disability Law Attorneys, Attorneys, Criminal Law Attorneys, Legal Service Plans,
    Wakefield Paul G
    100 W Big Beaver Rd
    Troy, MI 48084
    (248) 457-9860
    Attorneys, Legal Service Plans
    Kerr Russell and Weber PLC
    201 W Big Beaver Rd
    Troy, MI 48084
    (248) 740-9820
    Attorneys, Legal Service Plans
    Ringsmuth Wuori PLC
    102 W Front St
    Traverse City, MI 49684
    (231) 714-9809
    Attorneys,  Personal Injury Law Attorneys,  Wrongful Death Attorneys,  Accident & Property Damage At
    Walton Smith Phillips & Dixon PC
    216 Cass St
    Traverse City, MI 49684
    (231) 714-9803
    Probate Law Attorneys,  Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Social Security & Dis
    Campbell O'Brien & Mistele PC
    100 W Big Beaver Rd
    Troy, MI 48084
    (248) 743-9800
    Corporation & Partnership Law Attorneys,  Attorneys,  Business Bankruptcy Law Attorneys,  Legal Serv
    Staff Counsel
    3001 W Big Beaver Rd
    Troy, MI 48084
    (248) 362-9800
    Insurance Attorneys, Attorneys
    Brandt Fisher Alward & Pezzetti PC
    1241 E 8th St
    Traverse City, MI 49686
    (231) 941-9660
    Legal Service Plans,  Attorneys,  Corporation & Partnership Law Attorneys,  Criminal Law Attorneys,
    Rice Susan J
    1241 E 8th St # 1
    Traverse City, MI 49686
    (231) 941-9660
    Attorneys, Legal Service Plans
    Vermetten Matthew D
    1241 E 8th St # 1
    Traverse City, MI 49686
    (231) 941-9660
    Attorneys, Legal Service Plans
    Martinelli & Montney PLC
    802 S Garfield Ave
    Traverse City, MI 49686
    (231) 922-9600
    Corporation & Partnership Law Attorneys, Attorneys, Real Estate Attorneys, Legal Service Plans
    Waelchli Thomas R Law Office
    100 W Big Beaver Rd
    Troy, MI 48084
    (248) 526-9595
    General Practice Attorneys, Attorneys, Legal Service Plans
    Bergstrom, Gary Atty
    13310 S West Bay Shore Dr
    Traverse City, MI 49684
    (231) 941-9550
    Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Domestic Violence Attorneys,  Child Custody A
    Zeigler & Associates PC
    3001 W Big Beaver Rd Ste 408
    Troy, MI 48084
    (248) 643-9530
    Labor & Employment Law Attorneys, Attorneys, Legal Service Plans
    Zelenock Jay Law Firm PLC
    160 E State St
    Traverse City, MI 49684
    (231) 929-9529
    Attorneys,  Accident & Property Damage Attorneys,  Personal Injury Law Attorneys,  Employee Benefits
    Rosi & Gardner PC
    735 S Garfield Ave
    Traverse City, MI 49686
    (231) 668-9517
    Family Law Attorneys, Attorneys, Real Estate Attorneys
    Tremp Robert P
    1496 Business Park Dr # B
    Traverse City, MI 49686
    (231) 932-9500
    Attorneys
    Schwartz Law Firm
    30078 Schoenherr Rd
    Warren, MI 48088
    (248) 553-9400
    Attorneys,  Criminal Law Attorneys,  Accident & Property Damage Attorneys,  Personal Injury Law Atto
    Branch Willaim F
    29065 Schoenherr Rd
    Warren, MI 48088
    (586) 574-9400
    Attorneys, Legal Service Plans, Bankruptcy Law Attorneys
    Matthew Connolly
    409 E 8th St
    Traverse City, MI 49686
    (231) 932-9277
    Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  General Practice Attorneys,  Divorce Att
    Conybeare Law Office PC
    519 Main St
    Saint Joseph, MI 49085
    (269) 932-9201
    Social Security & Disability Law Attorneys,  Attorneys,  Accident & Property Damage Attorneys,  Empl
    Vincent & Vincent
    50 W Big Beaver Rd Ste 255
    Troy, MI 48084
    (248) 688-9200
    Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
    Ordway Law Firm
    3055 Shore Wood Dr
    Traverse City, MI 49686
    (231) 223-9177
    General Practice Attorneys, Attorneys
    Michail & Associates
    755 W Big Beaver Rd
    Troy, MI 48084
    (248) 688-9176
    General Practice Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US