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 Lake, MI

Benefits of a Limited Liability Company (LLC) in Lake, 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 Lake, MI
    Beauvais III Philip H
    4438 Oakbridge Dr # A
    Flint, MI 48532
    (810) 230-9040
    Attorneys, Legal Service Plans
    Theodoroff Douglas
    4438 Oakbridge Dr
    Flint, MI 48532
    (810) 230-9006
    Attorneys
    Kontorousis D John
    2425 S Linden Rd Ste D112
    Flint, MI 48532
    (810) 341-8480
    Attorneys,  Social Security & Disability Law Attorneys,  DUI & DWI Attorneys,  Legal Service Plans,
    Himelhoch, Jeffrey J PC
    2347 Stonebridge Dr
    Flint, MI 48532
    (810) 732-7100
    Accident & Property Damage Attorneys, Personal Injury Law Attorneys, Social Security & Disability
    Pabst Tom R
    2503 S Linden Rd Ste 185
    Flint, MI 48532
    (810) 732-6792
    Attorneys, Legal Service Plans
    Kopen Law Offices
    120 S Clark St
    Centreville, MI 49032
    (269) 467-6357
    Personal Injury Law Attorneys, Insurance Attorneys, Attorneys
    Weier Dawn M
    2387 S Linden Rd
    Flint, MI 48532
    (810) 733-6009
    Attorneys, Wills, Trusts & Estate Planning Attorneys, Corporation & Partnership Law Attorneys, Legal
    Tucker Kenneth R
    2349 Stonebridge Dr
    Flint, MI 48532
    (810) 720-5991
    Divorce Attorneys,  Attorneys,  Criminal Law Attorneys,  Accident & Property Damage Attorneys,  Pers
    Mark J Newman
    2351 Stonebridge Dr Bldg G
    Flint, MI 48532
    (810) 407-5844
    Civil Litigation & Trial Law Attorneys, Attorneys, Business Law Attorneys, Real Estate Attorneys, Cr
    Williams Paul
    2711 Center Ave
    Essexville, MI 48732
    (989) 894-5310
    General Practice Attorneys, Attorneys
    Bankruptcy Law Office
    2425 S Linden Rd Ste C
    Flint, MI 48532
    (810) 720-4333
    Bankruptcy Law Attorneys,  Attorneys,  Legal Service Plans,  General Practice Attorneys
    Isaac Roger G
    4438 Oakbridge Dr # A
    Flint, MI 48532
    (810) 732-4022
    Corporation & Partnership Law Attorneys, Attorneys, Legal Service Plans, Real Estate Attorneys
    Henry Hanflik
    1380 S Linden Rd
    Flint, MI 48532
    (810) 720-4000
    Accident & Property Damage Attorneys,  Wrongful Death Attorneys,  Automobile Accident Attorneys,  At
    Rockwell Donald G
    4413 Corunna Rd
    Flint, MI 48532
    (810) 732-3440
    Attorneys
    Lauren Deann Dozier PLLC
    P.O. Box 32028
    Detroit, MI 48232
    (313) 478-2318
    Child Custody Attorneys, Criminal Law Attorneys, Divorce Attorneys, Domestic Violence Attorneys, Fam
    Able Criminal Defense P
    PO Box 856
    Farmington, MI 48332
    (248) 719-2168
    Attorneys
    Brown David W
    2387 S Linden Rd Ste 130
    Flint, MI 48532
    (810) 733-2110
    Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  General Practice Attorneys,  Legal Servi
    Dawes Barbara A
    2377 S Linden Rd Ste B
    Flint, MI 48532
    (810) 733-2050
    Probate Law Attorneys, Attorneys, Family Law Attorneys, Wills, Trusts & Estate Planning Attorneys, G
    Kechkaylo Nicholas A
    2377 S Linden Rd Ste B
    Flint, MI 48532
    (810) 733-2050
    Attorneys
    Robb M Allen
    2367 S Linden Rd Ste B
    Flint, MI 48532
    (810) 230-1415
    Attorneys
    Zerka Albert A
    1072 S Elms Rd Ste F
    Flint, MI 48532
    (810) 635-0600
    Attorneys
    Marrs & Terry, P
    2387 S Linden Rd Ste 140
    Flint, MI 48532
    (734) 663-0555
    Attorneys,  Business Bankruptcy Law Attorneys,  Legal Service Plans,  Bankruptcy Law Attorneys
    Carey Leo P
    2305 Stonebridge Dr
    Flint, MI 48532
    (810) 732-0188
    Attorneys,  Criminal Law Attorneys,  Accident & Property Damage Attorneys,  DUI & DWI Attorneys,  Le
    Daniel J Rittman
    2347 Stonebridge Dr
    Flint, MI 48532
    (810) 233-0133
    Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US