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 Foreston, MN

Benefits of a Limited Liability Company (LLC) in Foreston, 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 Foreston, MN
    Motin Law Office Pa
    327 Main St NW
    Elk River, MN 55330
    (763) 241-9400
    Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Tax Attorneys,  Divorce Attorneys,  Busi
    Aho Brian R Attorney
    327 Main St NW
    Elk River, MN 55330
    (763) 241-9400
    Attorneys, Legal Service Plans
    Shelden M. Vie
    503 Jackson Ave NW
    Elk River, MN 55330
    (763) 241-9376
    Bankruptcy Law Attorneys,  Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Legal Service Pl
    Strootman Law Office
    11070 183rd Cir NW
    Elk River, MN 55330
    (763) 633-9333
    Construction Law Attorneys, Attorneys
    Joel Heiligman Law (DUI/DWI)
    6300 Shingle Creek Pkwy #165
    Brooklyn Center, MN 55430
    (763) 788-9231
    Attorneys,  Accident & Property Damage Attorneys,  DUI & DWI Attorneys,  Personal Injury Law Attorne
    Gurovitsch James D
    6160 Summit Dr N # 425
    Minneapolis, MN 55430
    (763) 566-8800
    General Practice Attorneys, Attorneys, Legal Service Plans
    Kaminsky Joseph
    6300 Shingle Creek Pkwy Suite 260
    Minneapolis, MN 55430
    (612) 332-8479
    Sexual Harassment Attorneys, Attorneys, Criminal Law Attorneys, Accident & Property Damage Attorneys
    Magnussen Rhonda J
    812 Main St NW # 102
    Elk River, MN 55330
    (763) 441-7040
    Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Legal Service Plans,  Bankruptcy Law Att
    Family Glen A. Norton
    425 Brookdale Corp. Ctr 6160 Summit Dr. N.
    Minneapolis, MN 55430
    (763) 450-6600
    Divorce Attorneys
    Jensen Jeff
    647 Main St NW
    Elk River, MN 55330
    (763) 441-5436
    Attorneys,  Criminal Law Attorneys,  Accident & Property Damage Attorneys,  Civil Litigation & Trial
    Lloyd Nancy
    305 Jackson Ave NW
    Elk River, MN 55330
    (763) 633-5299
    Attorneys,  Family Law Attorneys,  General Practice Attorneys,  Legal Service Plans,  Bankruptcy Law
    Kieffer Law Firm
    6160 Summit Dr N
    Minneapolis, MN 55430
    (651) 214-5180
    Mediation Services,  Bankruptcy Law Attorneys,  Estate Planning Attorneys,  Family Law Attorneys,  I
    Pesch Ann
    19960 Ferret St NW
    Elk River, MN 55330
    (763) 753-5125
    Attorneys
    Joel Heiligman Law
    6300 Shingle Creek Pkwy #165
    Minneapolis, MN 55430
    (763) 280-5072
    DUI & DWI Attorneys,  Attorneys,  Criminal Law Attorneys,  Juvenile Law Attorneys,  Accident & Prope
    Hess Law Office PA
    11070 183rd Cir NW Ste A
    Elk River, MN 55330
    (763) 241-4855
    Corporation & Partnership Law Attorneys,  Attorneys,  Legal Service Plans,  Bankruptcy Law Attorneys
    Brandell Law Office & Mediation Center
    11070 183rd Cir NW Ste AA
    Elk River, MN 55330
    (763) 441-4825
    General Practice Attorneys, Attorneys, Legal Service Plans
    Carlson & Jones, P.A.
    657 Main St NW
    Elk River, MN 55330
    (763) 241-4775
    Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
    Mark L. Soule
    19230 Evans St NW
    Elk River, MN 55330
    (612) 272-4455
    Bankruptcy Law Attorneys, Attorneys, Legal Service Plans
    Smith & Associates Attys
    657 Main St NW
    Elk River, MN 55330
    (763) 441-3990
    Attorneys,  Family Law Attorneys,  Labor & Employment Law Attorneys,  Accident & Property Damage Att
    Yang Lucas L
    1087 Payne Ave
    Saint Paul, MN 55130
    (651) 772-3236
    Attorneys, Legal Service Plans
    Kaminsky Wally
    657 Main St NW
    Elk River, MN 55330
    (763) 441-3009
    General Practice Attorneys, Attorneys, Legal Service Plans
    Carson Jeffrey A Attorney
    6300 Shingle Creek Pkwy
    Minneapolis, MN 55430
    (763) 561-2800
    General Practice Attorneys, Attorneys
    Carson and Clelland & Schreder Attys
    6300 Shingle Creek Pkwy Ste 305
    Minneapolis, MN 55430
    (763) 561-2800
    Attorneys, General Practice Attorneys, Legal Service Plans
    Swanson William G
    6200 Shingle Creek Pkwy # 370
    Minneapolis, MN 55430
    (763) 566-2450
    Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US