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 Euclid, MN

Benefits of a Limited Liability Company (LLC) in Euclid, 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 Euclid, MN
    Green Pamela L
    5801 Duluth St # 360
    Minneapolis, MN 55422
    (763) 542-9888
    General Practice Attorneys, Attorneys, Legal Service Plans
    Stoneking Gary
    3605 France Ave N
    Minneapolis, MN 55422
    (763) 302-9792
    General Practice Attorneys, Attorneys, Legal Service Plans
    Saavedra Law Firm P
    2540 Quail Ave N
    Minneapolis, MN 55422
    (763) 545-9790
    General Practice Attorneys, Attorneys, Legal Service Plans
    Wersal Law Office PA
    PO Box 22683
    Minneapolis, MN 55422
    (612) 701-9661
    General Practice Attorneys, Attorneys, Legal Service Plans
    Suzanne Born Adoption & Assisted Reproduction Lawyer
    2440 Brookridge Avenue
    Minneapolis, MN 55422
    (763) 231-9600
    Adoption Law Attorneys, Family Law Attorneys, Attorneys
    Lawrence E. Nichols
    1971 Seneca Rd
    Saint Paul, MN 55122
    (612) 749-9351
    Attorneys, General Practice Attorneys, Drug Charges Attorneys
    Tigue Randall
    810 Lilac Dr N # 205
    Minneapolis, MN 55422
    (763) 529-9211
    General Practice Attorneys, Attorneys, Legal Service Plans
    Daniel Sheridan Law Offices
    4470 Erin Dr # 101
    Saint Paul, MN 55122
    (651) 452-8705
    General Practice Attorneys, Attorneys, Legal Service Plans
    Gallagher Susan
    2130 Cliff Rd Ste 120
    Saint Paul, MN 55122
    (651) 209-8364
    General Practice Attorneys, Attorneys
    Banas Family Law, P.A.
    2113 Cliff Dr
    Saint Paul, MN 55122
    (651) 361-8109
    Divorce Attorneys,  Attorneys,  Family Law Attorneys,  Legal Service Plans,  Criminal Law Attorneys
    Evans Law Office
    4660 Slater Rd
    Saint Paul, MN 55122
    (651) 882-7886
    General Practice Attorneys, Attorneys, Legal Service Plans
    Cylkowski Law Office PA
    4590 Scott Trl Suite 210
    Saint Paul, MN 55122
    (651) 882-7808
    Family Law Attorneys,  Child Custody Attorneys,  Attorneys,  Schools & Education Law Attorneys,  Emp
    Orme Michael
    4040 Nicols Rd
    Saint Paul, MN 55122
    (651) 688-7646
    Attorneys, Legal Service Plans
    Weidner Michael
    4660 Slater Rd
    Saint Paul, MN 55122
    (651) 882-6300
    Estate Planning Attorneys, Attorneys, Estate Planning, Probate, & Living Trusts
    Stier Paul J
    4450 Erin Dr # 200
    Saint Paul, MN 55122
    (651) 452-6250
    Attorneys, General Practice Attorneys, Legal Service Plans, Criminal Law Attorneys, Family Law Attor
    Todd R. Counters, Ltd.
    4660 Slater Rd, Suite 250
    Saint Paul, MN 55122
    (651) 882-4996
    Divorce Attorneys, Family Law Attorneys, Attorneys
    Huffman, Richard W
    5101 Olson Memorial Hwy
    Minneapolis, MN 55422
    (763) 400-4991
    Probate Law Attorneys,  Attorneys,  Family Law Attorneys,  Wills, Trusts & Estate Planning Attorney
    Gumerman Teresa A
    610 Ottawa Ave N
    Minneapolis, MN 55422
    (763) 521-4499
    Attorneys
    Milavetz Gallop & Milavetz
    4580 Scott Trl Ste 208
    Saint Paul, MN 55122
    (651) 967-4473
    General Practice Attorneys, Attorneys, Legal Service Plans
    Kemper Mark
    3470 Washington Dr # 203
    Saint Paul, MN 55122
    (651) 493-4122
    General Practice Attorneys, Attorneys
    Moga Law Group, P
    4294 Dahlberg Dr
    Minneapolis, MN 55422
    (612) 284-4067
    Attorneys, Social Security & Disability Law Attorneys, Legal Service Plans
    Family First Law Office
    3470 Washington Dr
    Saint Paul, MN 55122
    (651) 222-3784
    General Practice Attorneys, Attorneys
    Koenen Kurt
    1130 Division St N
    Clara City, MN 56222
    (320) 847-3649
    Attorneys
    Shinnick's Our Own Hdwr
    PO Box 370
    Clara City, MN 56222
    (320) 847-3317
    Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US