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 88102

Advantages and Disadvantages of a Limited Liability Company (LLC) in Zip Code 88102


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 NM 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 NM 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 88102
Boyd John W
20 First Plaza Ctr NW # 700
Albuquerque, NM 87102
(505) 842-9960
Attorneys, Legal Service Plans
Duncan Theresa M
20 First Plaza Ctr NW Ste 700
Albuquerque, NM 87102
(505) 842-9960
Attorneys, Legal Service Plans
Hollander Nancy
20 First Plaza Ctr NW # 700
Albuquerque, NM 87102
(505) 842-9960
Attorneys, Legal Service Plans
Ives Zachary A
20 First Plaza Ctr NW # 700
Albuquerque, NM 87102
(505) 842-9960
Attorneys, Legal Service Plans
Schmidt-Noward Molly
20 First Plaza Ctr NW # 700
Albuquerque, NM 87102
(505) 842-9960
Attorneys, Legal Service Plans
Urias David H
20 First Plaza Ctr NW # 700
Albuquerque, NM 87102
(505) 842-9960
Attorneys
Baca Monica D
1412 6th St NW
Albuquerque, NM 87102
(505) 842-9828
Attorneys, Legal Service Plans
Owens Ron
1003 Luna Cir NW
Albuquerque, NM 87102
(505) 243-9797
Attorneys,  Malpractice Law Attorneys,  Accident & Property Damage Attorneys,  Legal Service Plans,
Callaway Carolyn
1014 Lomas Blvd NW
Albuquerque, NM 87102
(505) 291-9774
Attorneys, General Practice Attorneys
Branch Brian K
902 Roma Ave NW
Albuquerque, NM 87102
(505) 764-9710
General Practice Attorneys, Attorneys, Legal Service Plans
Richard B. Pugh, Attorney
518 Slate Ave NW
Albuquerque, NM 87102
(505) 766-9667
Attorneys,  Criminal Law Attorneys,  Civil Litigation & Trial Law Attorneys,  Personal Injury Law At
Sanchez Jacob N
7 Haines Ave NW
Albuquerque, NM 87102
(505) 766-9667
Attorneys
Pj Hartman
423 Mountain Rd NW
Albuquerque, NM 87102
(877) 206-9664
Attorneys, Legal Service Plans
Mc Mahon Kathleen
820 2nd St NW
Albuquerque, NM 87102
(505) 830-9651
Attorneys,  Tax Return Preparation,  Legal Service Plans,  Tax Return Preparation-Business
Alderete David J
110 2nd St SW # 404
Albuquerque, NM 87102
(505) 843-9635
General Practice Attorneys, Attorneys
Thomason Bryan
111 Lomas Blvd NW # 502
Albuquerque, NM 87102
(505) 265-9630
General Practice Attorneys, Attorneys, Legal Service Plans
The Romero Law Firm, P.A.
1001 5th Street Northwest
Albuquerque, NM 87102
(505) 345-9616
Criminal Law Attorneys, Discrimination & Civil Rights Law Attorneys, Drug Charges Attorneys, DUI & D
Bloom Linda
817 Gold Ave SW
Albuquerque, NM 87102
(505) 764-9600
Attorneys, Legal Service Plans
Lyons Adam E
201 3rd St NW # 1700
Albuquerque, NM 87102
(505) 724-9572
Attorneys
Duffy Eduardo A
201 3rd St NW
Albuquerque, NM 87102
(505) 724-9566
Attorneys
Oman Kester
215 Gold Ave SW # 201
Albuquerque, NM 87102
(505) 843-9565
Attorneys, Legal Service Plans
Burris Eric R
201 3rd St NW # 1700
Albuquerque, NM 87102
(505) 724-9563
Attorneys
Alarid Jason M
1412 6th St NW
Albuquerque, NM 87102
(505) 247-9500
Attorneys, General Practice Attorneys
Pistone Scott
120 Granite Ave NW
Albuquerque, NM 87102
(505) 842-9498
Attorneys, General Practice Attorneys, Legal Service Plans
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US