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 Ashtabula, OH

Benefits of a Limited Liability Company (LLC) in Ashtabula, OH


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 OH 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 OH 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 Ashtabula, OH
    Varckette Francis A
    3602 Lake Ave # C223
    Ashtabula, OH 44004
    (440) 964-9444
    Attorneys, General Practice Attorneys
    Depascale Nelda
    3226 Blair Ave
    Ashtabula, OH 44004
    (440) 997-8931
    Attorneys, Family Law Attorneys
    Shiflet Hobart M
    1610 E Prospect Rd
    Ashtabula, OH 44004
    (440) 992-8211
    General Practice Attorneys, Attorneys
    Simon Thomas J
    1105 Bridge St
    Ashtabula, OH 44004
    (440) 964-8050
    Attorneys, Legal Service Plans
    Andrews Mark W
    4817 State Rd Ste 100
    Ashtabula, OH 44004
    (440) 998-6835
    Corporation & Partnership Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,
    Cordova Philip
    4817 State Rd Ste 100
    Ashtabula, OH 44004
    (440) 998-6835
    Attorneys,  Family Law Attorneys,  Juvenile Law Attorneys,  Accident & Property Damage Attorneys,  L
    Spotts David M
    6847 Lake Rd W
    Ashtabula, OH 44004
    (440) 964-6466
    Attorneys
    Riedel Katherine S Atty
    134 W 46th St
    Ashtabula, OH 44004
    (440) 997-6175
    General Practice Attorneys, Attorneys
    Cordell, Stuart W - Warren & Young
    134 W 46th St
    Ashtabula, OH 44004
    (440) 997-6175
    Attorneys, Wills, Trusts & Estate Planning Attorneys, Corporation & Partnership Law Attorneys, Gener
    Cimorell Bret J Attorney At
    4366 Main Ave
    Ashtabula, OH 44004
    (440) 992-6067
    Attorneys,  Divorce Attorneys,  Probate Law Attorneys,  Real Estate Attorneys,  Estate Planning Atto
    Cool Kristin A
    355 W Prospect Rd Suite 111
    Ashtabula, OH 44004
    (440) 998-5337
    Attorneys,  Legal Service Plans,  Social Security & Disability Law Attorneys,  Accident & Property D
    Friedman Law Firm The
    355 W Prospect Rd Ste. 111
    Ashtabula, OH 44004
    (216) 998-5337
    Attorneys,  Social Security & Disability Law Attorneys,  Personal Injury Law Attorneys,  Legal Servi
    Meaney Michael P
    4366 Main Ave
    Ashtabula, OH 44004
    (440) 998-4267
    Attorneys,  Business Bankruptcy Law Attorneys,  General Practice Attorneys,  Bankruptcy Law Attorney
    Bobulsky William P
    1612 E Prospect Rd
    Ashtabula, OH 44004
    (440) 998-4214
    Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Accident & Property Damage Attorneys,  L
    Altier Samuel Atty
    1027 Lake Ave
    Ashtabula, OH 44004
    (440) 964-3311
    Attorneys
    Larson Bernadette
    355 W Prospect Rd Ste 103
    Ashtabula, OH 44004
    (440) 992-3120
    Family Law Attorneys, Attorneys
    Warren E Terry
    355 W Prospect Rd Ste 114B
    Ashtabula, OH 44004
    (440) 998-3039
    General Practice Attorneys, Attorneys
    Balin Paulette Atty
    355 W Prospect Rd
    Ashtabula, OH 44004
    (440) 992-2546
    General Practice Attorneys, Attorneys, Social Security & Disability Law Attorneys
    Hartman Dallas W
    147 S Main St
    Ashtabula, OH 44004
    (440) 997-2422
    Attorneys Referral & Information Service, Attorneys
    Ashtabula County Bar Association
    PO Box 829
    Ashtabula, OH 44005
    (440) 275-0717
    Attorneys Referral & Information Service, Attorneys
    Diamond Dubsky & Ford Co Lpa
    4817 State Rd
    Ashtabula, OH 44004
    (440) 998-0173
    Attorneys, Legal Service Plans
    Green Haines Sgambati
    355 W Prospect Rd Ste 125
    Ashtabula, OH 44004
    (440) 997-0011
    Social Security & Disability Law Attorneys,  Attorneys,  Labor & Employment Law Attorneys,  Malpract
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US