Find More Articles
12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents™
 
Get the Ohio Legal Documents You Need in Only Minutes!
  • Written by expert Attorneys
  • Guaranteed for your State
  • Personalized for your situation
  • Finish and print in minutes!
 Personalize My Document 

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

Benefits of a Limited Liability Company (LLC) in Defiance, 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.

    •  
    Download & Print a Free OH Last Will Personalize This Document
    Page 1
    Page 2
    Page 3
    Page 4
    Page 5
    Page 6
    Page 7
    Page 8
    Page 9
    Page 10
     
    Download & Print a Free OH Living Will Personalize This Document
    Page 1
    Page 2
    Page 3
    Page 4
    Page 5
    Page 6
    Page 7
    Page 8
      Answer Easy
    Questions
    answer simple questions online step by step
    Easy Questions, Instant Documents
    • Finish in Minutes
    • Download Immediately
    • Written by Attorneys
    • 100% Guaranteed
      Get Instant Legal
        Documents™
    Print, save or email your finished legal document immediately!
    Last Will & Testament
    Related Legal Services near Defiance, OH
    Arthur O'neil Mertz Michel & Brown Co Lpa
    901 Ralston Ave
    Defiance, OH 43512
    (419) 782-9881
    General Practice Attorneys, Attorneys, Legal Service Plans
    Hitchcock James E
    650 W 1st St
    Defiance, OH 43512
    (419) 785-8919
    Divorce Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Business Bankruptcy
    Furnas Law Firm, LLC
    106 Clinton Street
    Defiance, OH 43512
    (419) 785-8906
    Child Custody Attorneys, Divorce Attorneys, Attorneys
    Stephen K. Snavely, Co., LPA
    505 4th St
    Defiance, OH 43512
    (419) 782-8846
    Probate Law Attorneys,  Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Family Law Attorney
    Bates E Charles Attorney
    922 E 2nd St
    Defiance, OH 43512
    (877) 968-7076
    Juvenile Law Attorneys,  Attorneys,  DUI & DWI Attorneys,  Traffic Law Attorneys
    Attorneys' Title Agcy of NW Oh
    419 5th St # 2000
    Defiance, OH 43512
    (419) 782-6055
    General Practice Attorneys, Title Companies, Attorneys
    Clemens Korhn Liming Warncke Ltd
    419 5th St
    Defiance, OH 43512
    (419) 782-6055
    Attorneys,  Appellate Practice Attorneys,  Commercial Law Attorneys,  Litigation & Tort Attorneys,  
    Sondergaard Steven J
    116 Grand Ave
    Defiance, OH 43512
    (419) 956-4823
    Divorce Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Child Custody Attorn
    Bish Butler & Thompson LTD
    101 Clinton St
    Defiance, OH 43512
    (419) 782-4474
    General Practice Attorneys, Attorneys, Legal Service Plans
    Weaner, Zimmerman, Bacon & Yoder Ltd.
    401 Wayne Ave
    Defiance, OH 43512
    (419) 956-4317
    Guardianship Services, Traffic Law Attorneys, Litigation & Tort Attorneys, Administrative & Governme
    Weaner Zimmerman Bacon Yoder & Hubbard LTD
    401 Wayne Ave
    Defiance, OH 43512
    (419) 956-4317
    Legal Service Plans,  Attorneys,  Probate Law Attorneys,  Litigation & Tort Attorneys,  Business Law
    Straubaugh Law Office
    607 W 3rd St
    Defiance, OH 43512
    (419) 784-3700
    General Practice Attorneys, Attorneys
    Weaner, Zimmerman, Bacon & Yoder Ltd.
    401 Wayne Ave
    Defiance, OH 43512
    (419) 782-3010
    Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Probate Law Attorney
    Wolfrum Thomas
    15772 Hill Rd
    Defiance, OH 43512
    (419) 395-2256
    General Practice Attorneys
    Holtsberry Tim
    415 W 2nd St
    Defiance, OH 43512
    (855) 335-1469
    Attorneys, Civil Litigation & Trial Law Attorneys, Criminal Law Attorneys
    Kristen A. Stanton
    1931 E 2nd St Ste D
    Defiance, OH 43512
    (419) 784-0200
    Child Custody Attorneys,  Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Bankruptcy Law Atto
    Hubbard Law Firm
    110 Clinton St
    Defiance, OH 43512
    (419) 784-0055
    General Practice Attorneys, Attorneys
    Jeffrey Horvath Law Office
    306 Clinton St
    Defiance, OH 43512
    (419) 782-0051
    Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Social Security & Di
    Seibel Peter R
    621 W 2nd St
    Defiance, OH 43512
    (419) 784-0002
    Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US