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 Moorhead, MN

Benefits of a Limited Liability Company (LLC) in Moorhead, 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 Moorhead, MN
    Legal Services-Nw Mn
    1015 7th Ave N
    Moorhead, MN 56560
    (218) 233-8585
    Attorneys, Legal Service Plans
    Joseph Gregory J
    200 5th St S # 106A
    Moorhead, MN 56560
    (218) 233-8470
    Attorneys, Legal Service Plans
    Schmidt Shawn
    200 5th St S
    Moorhead, MN 56560
    (218) 236-8332
    Attorneys, General Practice Attorneys, Legal Service Plans
    Oppegard, Wolf & Quinton
    1800 30th Ave S
    Moorhead, MN 56560
    (218) 233-8105
    Attorneys,  Malpractice Law Attorneys,  Social Security & Disability Law Attorneys,  Accident & Prop
    Wolf Troy A
    1800 30th Ave S
    Moorhead, MN 56560
    (218) 233-8105
    Attorneys, Legal Service Plans
    Vogel Law Firm
    215 30th St N
    Moorhead, MN 56560
    (218) 236-6462
    Attorneys,  General Practice Attorneys,  Legal Service Plans,  Labor & Employment Law Attorneys,  Bu
    Swanson Joshua A
    215 30th St N
    Moorhead, MN 56560
    (218) 236-6462
    Attorneys, Legal Service Plans
    Rosenfeldt Jade M
    215 30th St N
    Moorhead, MN 56560
    (218) 236-6462
    Attorneys, Legal Service Plans
    Jenson Amy L
    215 30th St N
    Moorhead, MN 56560
    (218) 236-6462
    Attorneys, Legal Service Plans
    Foss Jessica L
    215 30th St N
    Moorhead, MN 56560
    (218) 236-6462
    Attorneys, Legal Service Plans
    Elmer Corey R
    215 30th St N
    Moorhead, MN 56560
    (218) 236-6462
    Attorneys, Legal Service Plans
    Manly Robert G
    215 30th St N
    Moorhead, MN 56560
    (218) 236-6462
    Attorneys, Legal Service Plans
    Abdo Karla J
    215 30th St N
    Moorhead, MN 56560
    (218) 236-6462
    Attorneys
    Kohler Kenneth J
    215 30th St N
    Moorhead, MN 56560
    (218) 236-6462
    Attorneys, Legal Service Plans
    Weir Jr H Patrick
    215 30th St N
    Moorhead, MN 56560
    (218) 236-6462
    Attorneys
    Minnesota Work Force Ctr
    715 11th St N # 302
    Moorhead, MN 56560
    (218) 287-5060
    Attorneys, State Government, Government Offices
    Cahill Barton J Attorney
    403 Center Ave Ste 200
    Moorhead, MN 56560
    (218) 236-4900
    Attorneys,  Family Law Attorneys,  Labor & Employment Law Attorneys,  Divorce Attorneys,  Arbitratio
    Pratt Carol
    901 14th St S
    Moorhead, MN 56560
    (218) 236-4897
    General Practice Attorneys
    Karlsson Law Office
    810 4th Ave S # 222
    Moorhead, MN 56560
    (218) 233-4049
    Attorneys, General Practice Attorneys, Legal Service Plans
    Public Defender's Office
    715 11th St N # 404
    Moorhead, MN 56560
    (218) 236-3893
    Attorneys
    Graff Law Office Incorporated
    1001 Center Ave Suite H-1
    Moorhead, MN 56560
    (855) 498-3385
    Social Security & Disability Law Attorneys, Legal Service Plans, Attorneys, General Practice Attorne
    Olson Thomas
    PO Box 9
    Moorhead, MN 56561
    (218) 233-3222
    Attorneys
    Opheim Law
    PO Box 972
    Moorhead, MN 56561
    (218) 443-2908
    Attorneys
    Hummel Law Office
    403 Center Ave
    Moorhead, MN 56560
    (218) 284-2771
    Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US