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 Ocean City, NJ

Benefits of a Limited Liability Company (LLC) in Ocean City, NJ


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 NJ 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 NJ 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 Ocean City, NJ
    Teitler & TEITLER
    618 West Ave # 201
    Ocean City, NJ 08226
    (609) 814-9995
    Attorneys Referral & Information Service
    Slater Tenaglia Fritz & Hunt
    301 3rd St
    Ocean City, NJ 08226
    (609) 399-9960
    General Practice Attorneys, Attorneys
    M.R. Cohen, Esquire
    30 YEARS E-X-P-E-R-I-E-N-C-E
    Ocean City, NJ 08226
    (609) 487-9611
    Child Custody Attorneys, Attorneys, Real Estate Attorneys
    Sheppard M Susan
    1645 Haven Ave # D1
    Ocean City, NJ 08226
    (609) 399-9506
    Attorneys, General Practice Attorneys
    Walker Douglas K
    15 E 8th St
    Ocean City, NJ 08226
    (609) 399-9095
    Attorneys, General Practice Attorneys, Legal Service Plans
    Kathryn M Laughlin Law Office
    117 Atlantic Ave
    Ocean City, NJ 08226
    (609) 545-8895
    General Practice Attorneys, Attorneys
    Hasbrouck David C Attorney
    728 West Ave Ste N101
    Ocean City, NJ 08226
    (609) 398-8166
    Attorneys
    Ford Flower Hasbrouck & King
    728 West Ave Ste N102
    Ocean City, NJ 08226
    (609) 398-8166
    Attorneys, Legal Service Plans
    Avolio & Hanlon
    10 E 9th St
    Ocean City, NJ 08226
    (609) 398-6966
    Attorneys, General Practice Attorneys, Legal Service Plans
    Carlucci Richard A
    801 Asbury Ave # 200
    Ocean City, NJ 08226
    (609) 399-6900
    General Practice Attorneys, Attorneys, Legal Service Plans
    Crawford, James F - James F Crawford Pc
    500 Bay Ave Ste A
    Ocean City, NJ 08226
    (609) 398-6860
    Personal Injury Law Attorneys, Estate Planning Attorneys, Attorneys
    Devlin Edmund F X
    801 Asbury Ave # 509
    Ocean City, NJ 08226
    (609) 840-6312
    General Practice Attorneys, Attorneys
    Serber Konschak Llp
    201 34th St
    Ocean City, NJ 08226
    (609) 398-4222
    Estate Planning Attorneys,  Attorneys,  Tax Attorneys,  Business Law Attorneys,  Real Estate Attorne
    Vincent M Desimone
    46 Waterway Rd
    Ocean City, NJ 08226
    (732) 244-3430
    General Practice Attorneys, Attorneys, Legal Service Plans
    Russell Richard A
    117 Atlantic Ave
    Ocean City, NJ 08226
    (609) 398-1900
    Attorneys, Legal Service Plans
    Kokes A Harold
    728 West Ave # S202
    Ocean City, NJ 08226
    (609) 399-1111
    Attorneys, Legal Service Plans
    Fleming & Spiegle PC
    1301 Pleasure Ave
    Ocean City, NJ 08226
    (609) 399-1080
    General Practice Attorneys, Attorneys
    Loveland Garrett & Batistini
    801 Asbury Ave Ste 412
    Ocean City, NJ 08226
    (609) 399-0035
    General Practice Attorneys, Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US