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 South Saint Paul, MN

Benefits of a Limited Liability Company (LLC) in South Saint Paul, 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 South Saint Paul, MN
    Dalager Joe C Atty
    222 Grand Ave W
    South Saint Paul, MN 55075
    (651) 451-9956
    General Practice Attorneys, Attorneys
    Atkins Joseph E Attorney
    222 Grand Ave W
    South Saint Paul, MN 55075
    (651) 451-9956
    Attorneys
    TAURINSKAS LAW FIRM, P.A.
    633 Concord St S Ste 320
    South Saint Paul, MN 55075
    (651) 451-9743
    Attorneys, Probate Law Attorneys, Corporation & Partnership Law Attorneys, Real Estate Attorneys, Es
    Christine Shymanski Murphy
    P.O. Box 685
    South Saint Paul, MN 55075
    (651) 387-9493
    Attorneys, Family Law Attorneys, Divorce Attorneys, Landlord & Tenant Attorneys, Employment Discrimi
    Kranz William J Attorney
    222 Grand Ave W
    South Saint Paul, MN 55075
    (651) 450-9000
    General Practice Attorneys, Attorneys
    Tate Thomas B
    708 13th Ave N
    South Saint Paul, MN 55075
    (651) 457-6750
    Patent, Trademark & Copyright Law Attorneys,  Attorneys,  General Practice Attorneys,  Copyright Se
    Bartscher Joy
    105 Hardman Ct
    South Saint Paul, MN 55075
    (651) 451-6411
    Criminal Law Attorneys, Attorneys, Legal Service Plans
    Vesel Law Firm
    1185 Concord St N
    South Saint Paul, MN 55075
    (651) 447-2368
    General Practice Attorneys, Attorneys
    Thomas Sieben
    105 Hardman Ct
    South Saint Paul, MN 55075
    (651) 442-2367
    Criminal Law Attorneys, Attorneys
    Regal Robert B Law Office Atty
    832 8th Ave S
    South Saint Paul, MN 55075
    (651) 451-2152
    Attorneys, General Practice Attorneys, Estate Planning, Probate, & Living Trusts
    Rohlf, Kenneth J - Levander Gillen & Miller
    633 Concord St S Suite 400
    South Saint Paul, MN 55075
    (651) 451-1831
    Attorneys, Civil Litigation & Trial Law Attorneys, Business Law Attorneys, Real Estate Attorneys, Ap
    Beeson, Daniel J - Le Vander Gillen & Miller
    633 Concord St S Suite 400
    South Saint Paul, MN 55075
    (651) 451-1831
    Attorneys,  Civil Litigation & Trial Law Attorneys,  Business Law Attorneys,  Real Estate Attorneys,
    Lehmann Christopher
    412 Southview Blvd # 1
    South Saint Paul, MN 55075
    (651) 455-1661
    General Practice Attorneys, Attorneys
    Vitek Dale E
    1128 Concord St S
    South Saint Paul, MN 55075
    (651) 451-0335
    Attorneys, General Practice Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US