Find More Articles
12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents™
 
Protect Your Family & Assets Today
with a Free Last Will & Testament
  • Finish and print in minutes!
  • Personalized for You
  • Written by expert Attorneys
  • Valid & Legal for North Carolina
 Start My Free Document 

Benefits of a Limited Liability Company (LLC) in Lexington, NC

Benefits of a Limited Liability Company (LLC) in Lexington, NC


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.

    •  
    Download & Print a Free NC Last Will Personalize This Document
    Page 1
     
    Download & Print a Free NC Living Will Personalize This Document
    Page 1
      Answer Easy
    Questions
    answer simple questions online step by step
    Easy Questions, Instant Documents
    • Finish in Minutes
    • Download Immediately
    • Written by Attorneys
    • 100% Guaranteed
      Get Instant Legal
        Documents™
    Print, save or email your finished legal document immediately!
    Last Will & Testament
    Related Legal Services near Lexington, NC
    Beeker Ned A
    416 Country Club Blvd
    Lexington, NC 27292
    (336) 249-9744
    General Practice Attorneys, Attorneys
    Leonard & Bell Attys
    113 W Center St Ste B
    Lexington, NC 27292
    (336) 249-9156
    Attorneys, Criminal Law Attorneys, Wills, Trusts & Estate Planning Attorneys, Corporation & Partners
    Grimes Jerry B
    20 S Main St
    Lexington, NC 27292
    (336) 249-9128
    Criminal Law Attorneys,  Family Law Attorneys,  Elder Law Attorneys,  Personal Injury Law Attorneys,
    Krueger C Roland
    4 Williams St
    Lexington, NC 27292
    (336) 248-8464
    Bankruptcy Law Attorneys, Social Security & Disability Law Attorneys, Attorneys
    Swann Michael A
    21 Vance Cir
    Lexington, NC 27292
    (336) 249-7777
    Attorneys,  Accident & Property Damage Attorneys,  Corporation & Partnership Law Attorneys,  General
    Wilson C Michael
    18 S Main St
    Lexington, NC 27292
    (336) 249-7731
    Attorneys, Legal Service Plans
    Cunningham III J Calvin
    18 S Main St
    Lexington, NC 27292
    (336) 249-7731
    General Practice Attorneys, Attorneys
    April Craft Crowson
    102 W 1st Ave Suite C
    Lexington, NC 27292
    (336) 300-7080
    Attorneys
    April Craft Crowson, P.C.
    PO Box 2042
    Lexington, NC 27293
    (336) 300-7080
    Attorneys, Traffic Law Attorneys
    Whitley W Darrell
    212 N State St
    Lexington, NC 27292
    (336) 249-7054
    Attorneys, Criminal Law Attorneys, Accident & Property Damage Attorneys, Corporation & Partnership L
    Nachamie & Whitley P Atty
    23 W 2nd St
    Lexington, NC 27292
    (336) 249-7054
    Attorneys, Criminal Law Attorneys, Accident & Property Damage Attorneys, Corporation & Partnership L
    Glascoff William
    102 W 1st Ave # C
    Lexington, NC 27292
    (336) 236-7041
    Criminal Law Attorneys, Attorneys, Legal Service Plans
    Myers Jon W
    16 Court Sq
    Lexington, NC 27292
    (336) 249-6468
    Real Estate Attorneys, Attorneys, Legal Service Plans
    Curry Holly
    113 W Center St # 202
    Lexington, NC 27292
    (336) 249-4900
    Real Estate Attorneys, Attorneys, Legal Service Plans
    Smith Timothy D
    6 E 4th St
    Lexington, NC 27292
    (336) 236-4357
    Attorneys, General Practice Attorneys
    Lexington Davidson County
    16 W 1st Ave
    Lexington, NC 27292
    (336) 793-4236
    Malpractice Law Attorneys, Attorneys
    Buggs Corey D
    418 W 5th Ave
    Lexington, NC 27292
    (336) 236-4042
    Criminal Law Attorneys, Attorneys, Legal Service Plans
    Berg Jeffrey J
    401 W Center St
    Lexington, NC 27292
    (336) 249-3870
    Business Litigation Attorneys, Attorneys
    Snyder Jr James E
    16 W 1st Ave
    Lexington, NC 27292
    (336) 249-3399
    Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Malpractice Law Attorneys,  Accident & P
    Lohr Philip B
    212 N State St
    Lexington, NC 27292
    (336) 248-2305
    General Practice Attorneys, Attorneys, Legal Service Plans
    Curry Scott Y
    212 N State St
    Lexington, NC 27292
    (336) 248-2304
    General Practice Attorneys, Attorneys
    Collins W Bradford
    101 W Center Street Ext
    Lexington, NC 27295
    (336) 248-2198
    Social Security & Disability Law Attorneys, Attorneys, Social Security Services, Real Estate Attorne
    Price Andrew S
    101 W Center Street Ext
    Lexington, NC 27295
    (336) 248-2198
    Social Security & Disability Law Attorneys, Attorneys, Social Security Services, Real Estate Attorne
    Wall III Carroll C
    129 W Center St
    Lexington, NC 27292
    (336) 243-2156
    Criminal Law Attorneys, DUI & DWI Attorneys, General Practice Attorneys, Legal Service Plans, Traffi
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US