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 Bosque, NM

Benefits of a Limited Liability Company (LLC) in Bosque, NM


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 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 Bosque, NM
    Davis, Gilchrist & Lee, P.C.
    124 Wellesley Dr SE
    Albuquerque, NM 87106
    (505) 435-9908
    Corporation & Partnership Law Attorneys,  Attorneys,  Legal Service Plans,  Administrative & Governm
    Branch Law Firm Aviation
    2502 Clark Carr Loop SE
    Albuquerque, NM 87106
    (505) 224-9832
    Attorneys, General Practice Attorneys
    Behar Samuel
    3104 Monte Vista Blvd NE
    Albuquerque, NM 87106
    (505) 312-9823
    General Practice Attorneys, Attorneys, Legal Service Plans
    Gilman James
    1400 Central Ave SE # 1000
    Albuquerque, NM 87106
    (505) 875-9645
    General Practice Attorneys, Attorneys
    Russo John
    2000 Randolph Rd SE
    Albuquerque, NM 87106
    (877) 741-8391
    Immigration Law Attorneys,  Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Real Estate Attor
    Russo, L John
    2000 Randolph Rd SE
    Albuquerque, NM 87106
    (877) 741-8391
    Attorneys,  Federal Law Attorneys,  Litigation & Tort Attorneys,  Family Law Attorneys,  Divorce Att
    Erika N Poindexter PC
    118 Wellesley Dr SE
    Albuquerque, NM 87106
    (505) 881-8186
    Attorneys,  Social Security & Disability Law Attorneys,  Personal Injury Law Attorneys,  Bankruptcy
    Snead William E
    111 Tulane Dr SE
    Albuquerque, NM 87106
    (505) 842-8177
    Attorneys
    Jewell Tommy
    2021 Girard Blvd SE # 201
    Albuquerque, NM 87106
    (505) 247-7426
    Attorneys, General Practice Attorneys, Legal Service Plans
    Kelin Law Firm The PC
    111 Tulane Dr SE
    Albuquerque, NM 87106
    (505) 242-7200
    General Practice Attorneys, Attorneys
    Goodman Jay
    1400 Central Ave SE # 2000
    Albuquerque, NM 87106
    (505) 504-7059
    General Practice Attorneys, Attorneys, Legal Service Plans
    Collins Robert B
    1009 Marquette Ave NE
    Albuquerque, NM 87106
    (505) 243-6948
    General Practice Attorneys, Attorneys
    Duran & McDonald
    108 Wellesley Dr NE Suite 100 SE
    Albuquerque, NM 87106
    (505) 312-6716
    Personal Injury Law Attorneys, Criminal Law Attorneys
    Massey Law Office
    3616 Campus Blvd NE
    Albuquerque, NM 87106
    (505) 268-6707
    Attorneys, General Practice Attorneys, Legal Service Plans
    Hildebrandt Corbin
    1400 Central Ave SE # 2000
    Albuquerque, NM 87106
    (505) 998-6626
    Attorneys
    Melbihess Arnold W
    2400 Miles Rd SE
    Albuquerque, NM 87106
    (505) 843-6322
    General Practice Attorneys, Attorneys
    Granberg & Stewart
    1400 Central Ave SE Suite 3300
    Albuquerque, NM 87106
    (505) 431-6214
    Litigation & Tort Attorneys,  Administrative & Governmental Law Attorneys,  Legal Service Plans,  Ac
    Brown Solomon
    500 Oak St NE # 107
    Albuquerque, NM 87106
    (505) 265-5721
    General Practice Attorneys, Attorneys
    Michael F. Hacker
    1400 Central Ave SE
    Albuquerque, NM 87106
    (505) 206-5303
    Personal Injury Law Attorneys, Civil Litigation & Trial Law Attorneys, Attorneys
    Jack Brant Law Office
    202 Tulane Dr SE
    Albuquerque, NM 87106
    (505) 232-5300
    General Practice Attorneys, Attorneys
    Toulouse Charlotte M
    122 Girard Blvd SE
    Albuquerque, NM 87106
    (505) 884-5000
    Attorneys, General Practice Attorneys, Legal Service Plans
    Mc Neill Robert P
    1400 Central Ave SE # 2000
    Albuquerque, NM 87106
    (505) 247-4440
    General Practice Attorneys, Attorneys, Legal Service Plans
    Nesbitt Laurel
    1400 Central Ave SE # 3300
    Albuquerque, NM 87106
    (505) 244-3779
    Attorneys,  Criminal Law Attorneys,  Labor & Employment Law Attorneys,  Personal Injury Law Attorney
    Simmons Nancy L
    120 Girard Blvd SE
    Albuquerque, NM 87106
    (505) 232-2575
    Attorneys, General Practice Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US