Find More Articles
12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents™
 
Protect Your Family 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 Rutherfordton, NC

Benefits of a Limited Liability Company (LLC) in Rutherfordton, 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 Rutherfordton, NC
    Lloyd David A Attorney
    235 N Washington St
    Rutherfordton, NC 28139
    (828) 286-9152
    Attorneys
    Hamrick Bowen Mebane & Lloyd Atty
    235 N Washington St
    Rutherfordton, NC 28139
    (828) 286-9152
    Attorneys
    Rogers, David William
    210 N Main St
    Rutherfordton, NC 28139
    (828) 287-8990
    Attorneys, Legal Service Plans
    Demayo Michael A
    321 W 3rd St
    Rutherfordton, NC 28139
    (828) 287-8700
    Attorneys
    Callahan, Chris
    252 Charlotte Rd
    Rutherfordton, NC 28139
    (828) 286-8505
    Attorneys, Family Law Attorneys, Mediation Services
    Elizabeth T Miller
    346 N Main St
    Rutherfordton, NC 28139
    (828) 286-8222
    Attorneys, General Practice Attorneys, Legal Service Plans
    Miller Elizabeth T
    346 N Main St
    Rutherfordton, NC 28139
    (828) 286-8222
    General Practice Attorneys, Attorneys, Legal Service Plans
    Dalton, Walter H
    346 N Main St
    Rutherfordton, NC 28139
    (828) 286-8222
    Attorneys
    Grimes Teich Anderson LLP
    365 Charlotte Rd
    Rutherfordton, NC 28139
    (888) 381-8136
    Social Security & Disability Law Attorneys,  Attorneys,  Accident & Property Damage Attorneys,  Corp
    Bourbeau Baiba
    185 N Main St
    Rutherfordton, NC 28139
    (828) 287-7678
    Attorneys, General Practice Attorneys, Legal Service Plans
    Mosely Law Firm P
    223 Charlotte Rd
    Rutherfordton, NC 28139
    (828) 287-7325
    Attorneys, General Practice Attorneys
    Vega Law Firm
    185 N Main St
    Rutherfordton, NC 28139
    (828) 287-7005
    Attorneys
    Julius Owens Commissioner
    289 N Main St
    Rutherfordton, NC 28139
    (828) 287-6406
    Attorneys, Legal Service Plans
    Burgin Deborah
    PO Box 1555
    Rutherfordton, NC 28139
    (828) 287-5426
    Attorneys, Legal Service Plans
    Lane, Peter E
    131 E Court St
    Rutherfordton, NC 28139
    (828) 287-5225
    Bankruptcy Law Attorneys,  Attorneys,  Real Estate Attorneys,  Wills, Trusts & Estate Planning Atto
    Farmer Joshua B
    187 N Washington St
    Rutherfordton, NC 28139
    (828) 286-4820
    Attorneys, Legal Service Plans
    Hargett Jeffrey B /Atty
    224 N Main St
    Rutherfordton, NC 28139
    (828) 288-3995
    Attorneys
    Price Smith Hargett Petho
    224 N Main St
    Rutherfordton, NC 28139
    (828) 288-3995
    Attorneys,  Malpractice Law Attorneys,  Accident & Property Damage Attorneys,  Corporation & Partner
    Smith William Benjamin /Atty
    224 N Main St
    Rutherfordton, NC 28139
    (828) 288-3995
    Attorneys
    Tomblin Farmer & Morris P
    187 N Washington St
    Rutherfordton, NC 28139
    (828) 286-3866
    Accident & Property Damage Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  S
    Padgett Law OFFICE P
    431 S Main St # 5
    Rutherfordton, NC 28139
    (828) 288-3800
    Attorneys
    Oxley Burwell Merri
    312 N Main St
    Rutherfordton, NC 28139
    (828) 287-3726
    Attorneys, Legal Service Plans
    Cobourn & Saleeby
    110 Taylor St # A
    Rutherfordton, NC 28139
    (828) 286-3343
    Attorneys
    Arledge Law Firm PLLC
    120 E Court St
    Rutherfordton, NC 28139
    (828) 287-3338
    Wills, Trusts & Estate Planning Attorneys,  Corporation & Partnership Law Attorneys,  Real Estate A
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US