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 Southfield, MI

Benefits of a Limited Liability Company (LLC) in Southfield, 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 Southfield, MI
    Fitch Law Firm
    25730 Lois Ln
    Southfield, MI 48075
    (248) 208-9963
    General Practice Attorneys, Attorneys
    Gorman Teri J
    30555 Southfield Rd Ste 400
    Southfield, MI 48076
    (248) 223-9922
    Attorneys
    Juanita's Consulting Services
    18877 W 10 Mile Rd
    Southfield, MI 48075
    (248) 552-9915
    Paralegals
    Bernadine B Trout Law Office
    24768 Lahser Rd
    Southfield, MI 48033
    (248) 386-9900
    General Practice Attorneys, Attorneys
    Spector Eric M
    19100 W 10 Mile Rd
    Southfield, MI 48075
    (248) 355-9885
    Accident & Property Damage Attorneys,  Attorneys,  Legal Service Plans,  Criminal Law Attorneys
    Gary M Greenberg Atty
    28411 Northwestern Hwy
    Southfield, MI 48034
    (248) 799-9870
    General Practice Attorneys, Attorneys
    Hone John S
    28411 Northwestern HWY
    Southfield, MI 48034
    (248) 948-9800
    Attorneys,  Accident & Property Damage Attorneys,  Personal Injury Law Attorneys,  Wrongful Death At
    Goodman Acker PC
    17000 W 10 Mile Rd
    Southfield, MI 48075
    (888) 768-9779
    Personal Injury Law Attorneys, Attorneys
    Webb Englehardt & Fernandes PLLC
    17000 W 10 Mile Rd
    Southfield, MI 48075
    (248) 395-9750
    Attorneys, Legal Service Plans
    Schwartz Seymour C
    17600 Northland Park Ct
    Southfield, MI 48075
    (248) 395-9715
    Attorneys
    Stuart J Snider
    17211 W 12 Mile Rd
    Southfield, MI 48076
    (248) 443-9700
    General Practice Attorneys, Attorneys
    Ravid & Associates, P,C.
    23855 Northwestern Hwy
    Southfield, MI 48075
    (248) 948-9696
    Attorneys, Legal Service Plans, Insurance
    F D Jackson & Assoc
    26677 W 12 Mile Rd
    Southfield, MI 48034
    (248) 358-9685
    Attorneys
    Ladue Gerald H
    17195 W 12 Mile Rd
    Southfield, MI 48076
    (248) 557-9620
    Attorneys, Legal Service Plans
    Buttar & Ryan
    20300 W 12 Mile Rd
    Southfield, MI 48076
    (248) 351-9584
    Immigration Law Attorneys
    A Better Way Bankruptcy
    29548 Southfield Rd
    Southfield, MI 48076
    (248) 559-9529
    Bankruptcy Law Attorneys
    Mc Guigan Law P
    24750 Lahser Rd
    Southfield, MI 48033
    (313) 963-9500
    Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
    Jacoby & Meyers-Bankruptcy, LLP
    26400 Lahser Rd Suite 109
    Southfield, MI 48033
    (248) 331-9499
    Bankruptcy Law Attorneys
    Friedman Ernest F
    24567 Northwestern HWY
    Southfield, MI 48075
    (248) 350-9440
    General Practice Attorneys, Attorneys, Legal Service Plans
    The Weintraub Group
    24901 Northwest Hwy Suite 311 Rd
    Southfield, MI 48334
    (248) 865-9430
    Patent, Trademark & Copyright Law Attorneys,  Attorneys,  Editorial & Publication Services,  Person
    Baditoi George PC
    25901 W 10 Mile Rd Ste 128
    Southfield, MI 48033
    (248) 352-9424
    Attorneys, Legal Service Plans
    Bill Stern PC
    24750 Lahser Rd
    Southfield, MI 48033
    (248) 353-9400
    Attorneys,  Family Law Attorneys,  Social Security & Disability Law Attorneys,  Employee Benefits &
    Marsalese Michael P
    21415 Civic Center Dr Suite 250
    Southfield, MI 48076
    (248) 350-9370
    General Practice Attorneys, Attorneys
    Law Office Carolyn J Jackson
    29425 Northwestern Hwy Ste 150
    Southfield, MI 48034
    (248) 809-9337
    Family Law Attorneys, Attorneys, General Practice Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US