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 New Haven, NY

Benefits of a Limited Liability Company (LLC) in New Haven, NY


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 NY 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 NY 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 New Haven, NY
    Snedaker Lynn & Anne
    6590 S Cayuga Lake Rd
    Ovid, NY 14521
    (607) 869-9787
    Divorce Attorneys
    American Society-Chech Relief
    321 E 73rd St
    New York, NY 10021
    (212) 729-9658
    Bankruptcy Law Attorneys
    Niren Associate Immigration
    300 International Dr # 100
    Buffalo, NY 14221
    (716) 986-9611
    Attorneys
    Brian R. Welsh, PLLC
    19 Limestone Drive - Suite 9
    Buffalo, NY 14221
    (716) 810-9603
    Family Law Attorneys, Attorneys
    Randy S. Margulis, Esq.
    19 Limestone Dr Suite 9
    Buffalo, NY 14221
    (716) 810-9600
    Attorneys,  Child Custody Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  DUI & DWI Atto
    Busell & Stier, PLLC
    98 Cuttermill Road, Ste 395N
    Great Neck, NY 11021
    (516) 829-9595
    Estate Planning, Probate, & Living Trusts, Elder Law Attorneys, Estate Planning Attorneys, Real Esta
    Home Roberta
    98 Cuttermill Rd Ste 338S
    Great Neck, NY 11021
    (516) 465-9409
    Attorneys
    Eiss James
    19 Limestone Dr # 1
    Buffalo, NY 14221
    (716) 633-9300
    Immigration Law Attorneys, Attorneys, Immigration & Naturalization Consultants, Legal Service Plans
    Quinn Daniel
    32 Ralph Ave
    Brooklyn, NY 11221
    (718) 452-9173
    Arbitration & Mediation Attorneys
    Aronowitz & Singer
    17 Barstow Rd
    Great Neck, NY 11021
    (212) 685-9170
    General Practice Attorneys, Attorneys, Legal Service Plans
    Albert Buzzetti & Associates, L.L.C.,
    2 Penn Plz Rm 1500
    New York, NY 10121
    (212) 564-9009
    Corporation & Partnership Law Attorneys,  Attorneys,  Accident & Property Damage Attorneys,  Persona
    Littman Peter N
    11 Court St
    Auburn, NY 13021
    (315) 253-8967
    General Practice Attorneys, Attorneys, Legal Service Plans
    Frank Murray Atty
    111 Great Neck Rd
    Great Neck, NY 11021
    (516) 466-8855
    Attorneys, Legal Service Plans
    Contiguglia Law Offices LLP
    10 Genesee St
    Auburn, NY 13021
    (315) 604-8854
    Elder Law Attorneys,  Attorneys,  Real Estate Attorneys,  General Practice Attorneys,  Estate Planni
    Sugarman Law Firm Llp
    125 Genesee St
    Auburn, NY 13021
    (315) 252-8551
    Attorneys,  Criminal Law Attorneys,  Business Law Attorneys,  Real Estate Attorneys,  Personal Injur
    Pesarchick Stephen G
    125 Genesee St
    Auburn, NY 13021
    (315) 252-8551
    General Practice Attorneys, Attorneys
    Zuniga Rinaldi Per Diem Attorneys and
    40 Cuttermill Rd - Ste. 301
    Great Neck, NY 11021
    (877) 737-8539
    Attorneys, Legal Service Plans
    Divita Robert G
    1725 Maple Rd
    Buffalo, NY 14221
    (716) 632-8520
    Attorneys, Legal Service Plans
    Samanowitz Ronald A
    98 Cuttermill Rd Ste 254S
    Great Neck, NY 11021
    (516) 482-8500
    General Practice Attorneys, Attorneys
    Burke Eugene
    5754 Main St
    Williamsville, NY 14221
    (716) 631-8444
    Attorneys, Legal Service Plans
    Mittenthal Lawrence
    525 Northern Blvd # 204
    Great Neck, NY 11021
    (516) 482-8422
    Attorneys, Accountants-Certified Public, Legal Service Plans
    Wisselman, Harounian & Associates, P.C.
    1010 Northern Blvd, Suite 300
    Great Neck, NY 11021
    (516) 773-8300
    Estate Planning, Probate, & Living Trusts, Divorce Attorneys, Family Law Attorneys, Real Estate Atto
    Blair Lisa
    2 Easterly Ave # 1A
    Auburn, NY 13021
    (315) 252-8290
    General Practice Attorneys, Attorneys
    Steven D. Hamburg
    111 Great Neck Road
    Great Neck, NY 11021
    (917) 885-8275
    Bankruptcy Law Attorneys,  Divorce Attorneys,  Family Law Attorneys,  Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US