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 Bowstring, MN

Benefits of a Limited Liability Company (LLC) in Bowstring, MN


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 MN 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 MN 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 Bowstring, MN
    Sussman Howard Law Offices
    3800 American Blvd W
    Minneapolis, MN 55431
    (952) 767-9995
    General Practice Attorneys, Attorneys
    Watje & Moore
    7900 Xerxes Ave S Suite 2000
    Minneapolis, MN 55431
    (952) 646-9991
    Attorneys, Litigation & Tort Attorneys
    Bloch & Whitehouse Pa
    8120 Penn Ave S # 550
    Minneapolis, MN 55431
    (952) 224-9977
    Divorce Attorneys, Family Law Attorneys, Attorneys
    Gelhar & Ousky P A
    5001 American Blvd W # 935
    Minneapolis, MN 55431
    (952) 806-9790
    Attorneys
    Bishop David J
    204 Lake Ave # 201
    Fairmont, MN 56031
    (507) 238-9432
    Attorneys, General Practice Attorneys
    Krahmer Inc
    204 Lake Ave Ste 201
    Fairmont, MN 56031
    (507) 238-9432
    Attorneys, Estate Planning Attorneys, Legal Service Plans
    Michael T. O'Rourke
    121 Oak Ridge Rd.
    Fairmont, MN 56031
    (507) 238-9295
    Civil Litigation & Trial Law Attorneys, Construction Law Attorneys, Insurance Attorneys, Litigation
    Bentz Darcy
    1860 Knollwood Dr
    Fairmont, MN 56031
    (507) 238-9227
    Attorneys, Legal Service Plans
    Hammargren & Meyer PA
    3500 American Blvd W # 450
    Minneapolis, MN 55431
    (952) 844-9033
    Litigation & Tort Attorneys, Attorneys
    Karen E Marty
    3800 American Blvd W #1500
    Minneapolis, MN 55431
    (952) 314-8776
    Attorneys,  Criminal Law Attorneys,  Federal Law Attorneys,  Civil Litigation & Trial Law Attorneys,
    Walsten & Te Slaa, PA
    7900 Xerxes Ave S Suite 2000
    Minneapolis, MN 55431
    (952) 856-8599
    Probate Law Attorneys,  Attorneys,  Social Security & Disability Law Attorneys,  Wills, Trusts & Es
    Hutterer Vincent
    7900 Xerxes Ave S # 928
    Minneapolis, MN 55431
    (952) 831-8585
    Attorneys
    Rise Inc
    9555 James Ave S Ste 270
    Minneapolis, MN 55431
    (952) 884-8330
    Bankruptcy Law Attorneys
    Horton Law Offices
    3800 American Blvd W # 1500
    Minneapolis, MN 55431
    (952) 922-8220
    General Practice Attorneys, Attorneys
    Maslon Edelman Borman & Brand, LLP
    3300 Wells Fargo Plz
    Minneapolis, MN 55431
    (612) 672-8200
    Attorneys, General Practice Attorneys, Legal Service Plans
    Milavetz Alan
    16500 France Ave S
    Minneapolis, MN 55431
    (651) 645-7777
    Attorneys
    Unger Law Office
    4700 Xerxes Ave S
    Minneapolis, MN 55431
    (612) 336-7730
    General Practice Attorneys, Attorneys, Legal Service Plans
    Elbert Philip J
    1108 S State St
    Fairmont, MN 56031
    (507) 359-7005
    Attorneys
    Carlson Jack W. Attys
    3600 American Blvd W Ste 400
    Minneapolis, MN 55431
    (952) 835-7000
    General Practice Attorneys, Attorneys, Legal Service Plans
    Faegre Baker Daniels LLP
    2200 Wells Fargo Plz
    Minneapolis, MN 55431
    (612) 766-7000
    General Practice Attorneys, Attorneys, Legal Service Plans
    Kelley Thomas R
    3600 American Blvd W # 400
    Minneapolis, MN 55431
    (952) 835-7000
    Attorneys,  Business Law Attorneys,  Real Estate Attorneys,  Legal Service Plans,  Accident & Proper
    Haberkorn Law Offices Ltd
    122 2nd St NW
    Aitkin, MN 56431
    (218) 927-6913
    General Practice Attorneys, Attorneys, Legal Service Plans
    Gerald H. Brandenhoff
    7900 Xerxes Avenue South (928 Wells Fargo Plaza)
    Bloomington, MN 55431
    (952) 679-6778
    Probate Law Attorneys,  Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Business Law Attorn
    Cundy & Martin, LLC
    7900 Xerxes Ave S
    Minneapolis, MN 55431
    (952) 679-6473
    Administrative & Governmental Law Attorneys, Attorneys, Family Law Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US