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 Lapeer, MI

Benefits of a Limited Liability Company (LLC) in Lapeer, 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 Lapeer, MI
    Nowak, Morgan & Miller PC
    385 W Nepessing St
    Lapeer, MI 48446
    (810) 664-9908
    Attorneys,  Accident & Property Damage Attorneys,  Criminal Law Attorneys,  Wills, Trusts & Estate
    Nowak Poniatowski & Morgan Pc
    385 W Nepessing St
    Lapeer, MI 48446
    (810) 664-9908
    Estate Planning Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Divorce Atto
    Miller John D
    385 W Nepessing St
    Lapeer, MI 48446
    (810) 664-9908
    Family Law Attorneys, Attorneys, Criminal Law Attorneys, Legal Service Plans
    Sharkey Michael J
    132 W Nepessing St
    Lapeer, MI 48446
    (810) 667-9502
    Accident & Property Damage Attorneys, Personal Injury Law Attorneys, Attorneys
    Olsman Mueller Wallace & Mackenzie PC
    350 N Court St Ste 209
    Lapeer, MI 48446
    (810) 667-9500
    Accident & Property Damage Attorneys,  Attorneys,  General Practice Attorneys,  Legal Service Plans
    Robert W Thomas
    407 Clay St
    Lapeer, MI 48446
    (810) 664-7555
    By Appointment
    Thomas Robert W
    407 Clay St
    Lapeer, MI 48446
    (810) 664-7555
    Hable Martin W
    235 W Genesee St Ste B
    Lapeer, MI 48446
    (810) 667-7123
    Bankruptcy Law Attorneys,  General Practice Attorneys,  Tax Attorneys,  Attorneys,  Administrative &
    Sharkey Ann
    132 W Nepessing St
    Lapeer, MI 48446
    (810) 664-6620
    Personal Injury Law Attorneys, Attorneys
    Kozma Larence R
    350 N Ct St Ste 202
    Lapeer, MI 48446
    (810) 664-6460
    Estate Planning Attorneys, Attorneys, Wills, Trusts & Estate Planning Attorneys, Criminal Law Attorn
    Des Jardins Bill
    1094 Michigan St
    Lapeer, MI 48446
    (810) 664-6213
    Family Law Attorneys
    Cassell Janet L CPA
    327 Cedar St
    Lapeer, MI 48446
    (810) 664-5933
    Accountants-Certified Public, Attorneys, General Practice Attorneys, Legal Service Plans
    Taylor Butterfield Howell Churchill & Jarvis PC
    407 Clay St
    Lapeer, MI 48446
    (810) 664-5921
    Probate Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Divorce Attorneys,  Social Security & D
    Riseman, Carl M - Taylor Butterfield Riseman
    407 Clay St
    Lapeer, MI 48446
    (810) 664-5921
    Estate Planning Attorneys, Attorneys, Business Law Attorneys, Personal Injury Law Attorneys
    Jarvis Steven D
    407 Clay St
    Lapeer, MI 48446
    (810) 664-5921
    Administrative & Governmental Law Attorneys, Estate Planning Attorneys, Attorneys
    Manko Stephan A
    132 W Nepessing St
    Lapeer, MI 48446
    (810) 664-4600
    Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Accident & Property Damage Attorneys,  C
    Picard, Renee Barry Shoults Law Office
    441 Clay St
    Lapeer, MI 48446
    (810) 664-4321
    Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Labor & Employment Law Attorneys,  Divor
    Herrick & Stockton PLLC
    350 N Court St
    Lapeer, MI 48446
    (810) 356-3698
    Family Law Attorneys,  Estate Planning Attorneys,  Attorneys,  Personal Injury Law Attorneys,  Legal
    Shoults Picard & Brooks, PLLC
    441 Clay St
    Lapeer, MI 48446
    (810) 356-3675
    Labor & Employment Law Attorneys,  Divorce Attorneys,  Employment Discrimination Attorneys,  Attorne
    Erik M. Scramlin, PLC
    132 W Nepessing St
    Lapeer, MI 48446
    (810) 656-3504
    Criminal Law Attorneys, Drug Charges Attorneys, DUI & DWI Attorneys, Traffic Law Attorneys
    Bostick Catherine
    624 W Nepessing St Suite L6
    Lapeer, MI 48446
    (810) 356-3231
    Child Custody Attorneys,  Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Criminal Law Attorn
    Mashni Ramsey H. Atty
    132 W Nepessing St
    Lapeer, MI 48446
    (810) 245-2345
    Attorneys,  Criminal Law Attorneys,  Divorce Attorneys,  Accident & Property Damage Attorneys,  Chil
    Richardson, David N
    301 W Genesee St
    Lapeer, MI 48446
    (810) 667-2055
    Wills, Trusts & Estate Planning Attorneys,  Attorneys,  Criminal Law Attorneys,  Divorce Attorneys,
    Raymond Mashni
    132 W Nepessing St
    Lapeer, MI 48446
    (810) 245-2042
    Attorneys,  Criminal Law Attorneys,  Divorce Attorneys,  Bankruptcy Law Attorneys,  Tax Attorneys,  
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US