12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
 
FINANCIAL & MARITAL

Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
 

Advantages and Disadvantages of a Limited Liability Company (LLC) in Zip Code 39107

Advantages and Disadvantages of a Limited Liability Company (LLC) in Zip Code 39107


Grit is often the single-most predictor of success.
 
- Jonah Lehrer


A Limited Liability Company (LLC) is a legal business entity that combines the liability protection of a corporation, the operating flexibility of a Partnership, and the tax benefits of a sole proprietorship. Though the rules for forming an LLC vary by state, it is a popular option for many start-up businesses.

Advantages:

Limited Personal Liability and Exposure

One advantage of an LLC is the limited liability shield, which protects the personal assets of its members. Creditors, typically, cannot hold members personally responsible for the debts and liabilities of the business. Members can only be liable to the extent of their business investment.

Pass-through Taxation

Though there are an array of tax options for a Limited Liability Company; an LLC is generally treated as a "pass-through" entity. Profits and losses pass through the business to the members and are taxed at the personal level. The business itself is not taxed. Reporting is done on members' individual income tax returns. No double taxation with both the company and the owner(s) paying taxes on the earnings of the business.

Operational Flexibility & Simplicity

An LLC is much less formal than a corporation. Record keeping and administrative procedures are not as onerous. There are no quarterly and annual meetings, or tax filings. Neither is there a board of directors.

Legitimacy

Registering a company as an LLC adds credibility to a business, and can help in brand building and marketing to potential clients and suppliers. In addition, the company can enter into contracts on its own, and also acquire property.

Disadvantages:

Higher Fees

An LLC typically pays higher filing fees compared to some other business entities or sole proprietorships. Additionally, some states require annual renewal fees or franchise taxes. It is difficult for an LLC to attract additional investment because the company does not have the ability to issue stocks and bonds. Members have to finance its business activities, or take in private investors. Getting a loan can be tough, especially for small and start-up companies. The company may have to use its business, or personal, assets to guarantee business loans.

Fewer fringe benefits

Employees of an LLC who receive fringe benefits, for example, medical insurance and parking, must treat these benefits as taxable income. This is also true for employees who own more than 2% of an S-corporation. However, employees of a C-corporation do not have to report fringe benefits as taxable income.
 
Personalize & Print a Free MS 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 MS 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 Zip Code 39107
Warren Jr G Martin
1311 Spring St
Gulfport, MS 39507
(228) 897-9975
Attorneys, Legal Service Plans
Mississippi Center for Legal Services Corporation
520 E Pass Rd
Gulfport, MS 39507
(228) 896-9148
Attorneys, General Practice Attorneys
Hoff, Frederick T Jr
625 16th St
Gulfport, MS 39507
(228) 863-8827
Real Estate Attorneys, Attorneys
Burrell Andrew C
1092 Acadian Dr Ste 4
Gulfport, MS 39507
(228) 896-8372
Attorneys, Legal Service Plans
Yentzen Michael J P
204 Courthouse Rd
Gulfport, MS 39507
(228) 594-8020
Attorneys, Legal Service Plans
Riley Donnie D /Atty
1529 Magnolia St Lot 21
Gulfport, MS 39507
(228) 896-7567
Attorneys, Legal Service Plans
Hatten W Edward Jr
2469 Greenview Dr
Gulfport, MS 39507
(228) 896-6534
Attorneys, Legal Service Plans
Westbrook Iii, William V - Bryant Dukes & Blakeslee P
1639 E Pass Rd
Gulfport, MS 39507
(228) 863-6101
Attorneys,  Labor & Employment Law Attorneys,  Civil Litigation & Trial Law Attorneys,  Personal Inj
Byrne Patricia
408 32nd St
Gulfport, MS 39507
(228) 669-5997
Attorneys
Burrell Andrew
750 E Pass Rd
Gulfport, MS 39507
(228) 896-4016
Employee Benefits & Worker Compensation Attorneys,  Attorneys,  Personal Injury Law Attorneys,  Soci
Herring, Shari
549 E Pass Rd
Gulfport, MS 39507
(228) 343-3982
Attorneys, Family Law Attorneys, Bankruptcy Law Attorneys
Merlin Law Group
368 Courthouse Rd Ste C
Gulfport, MS 39507
(228) 896-2826
Attorneys, Insurance Attorneys
Silbert Garon and Pitre
3506 Washington Ave Ste G
Gulfport, MS 39507
(228) 822-2404
Personal Injury Law Attorneys, Attorneys, Legal Service Plans
Waller Law Firm P
PO Box 3575
Jackson, MS 39207
(877) 363-1616
Attorneys, General Practice Attorneys
Hailey McNamara Hall Larmann & Papale LLP
302 Courthouse Rd
Gulfport, MS 39507
(228) 896-1144
Attorneys, Legal Service Plans
Roberts and Associates
30 29th St
Gulfport, MS 39507
(601) 544-0950
General Practice Attorneys, Attorneys
Foxworth, John A Jr
1200 E Pass Rd
Gulfport, MS 39507
(228) 328-0200
Accident & Property Damage Attorneys, Attorneys, General Practice Attorneys
Perry Murr Teel & Koenenn
625 16th St
Gulfport, MS 39507
(228) 896-0020
Wills, Trusts & Estate Planning Attorneys,  Attorneys,  Real Estate Attorneys,  Business Law Attorn
Murr Timothy L Atty
625 16th St
Gulfport, MS 39507
(228) 896-0020
Attorneys, Legal Service Plans
Morse George Atty
625 16th St
Gulfport, MS 39507
(228) 896-0020
Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US