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 Greenville, OH

Benefits of a Limited Liability Company (LLC) in Greenville, 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 Greenville, OH
    Dyer Garofalo Mann & Schultz
    700 Sweitzer St
    Greenville, OH 45331
    (937) 547-9000
    Attorneys,  Accident & Property Damage Attorneys,  Personal Injury Law Attorneys,  Legal Service Pla
    Hayes Margaret B
    127 W 5th St
    Greenville, OH 45331
    (937) 548-8995
    Attorneys, Real Estate Attorneys
    Randall E. Breaden Law Office
    414 Walnut St
    Greenville, OH 45331
    (888) 981-8971
    Attorneys, Business Law Attorneys, Commercial Law Attorneys
    Darke County
    504 S Broadway St
    Greenville, OH 45331
    (937) 547-7375
    Attorneys, County & Parish Government
    Donadio & Wagner Ltd
    1400 N Broadway St
    Greenville, OH 45331
    (937) 548-6888
    Attorneys,  Criminal Law Attorneys,  Business Law Attorneys,  Real Estate Attorneys,  Personal Injur
    J D
    119 Imo Blvd
    Greenville, OH 45331
    (937) 548-5700
    Attorneys
    R N J D
    220 E 4th St
    Greenville, OH 45331
    (937) 548-5700
    Attorneys
    Marchal & Marchal Ltd Attys At Law
    116 W 4th St
    Greenville, OH 45331
    (855) 885-4801
    Attorneys, Commercial Law Attorneys, Business Law Attorneys
    Detling James S
    421 Public Sq
    Greenville, OH 45331
    (937) 316-4800
    Bankruptcy Law Attorneys, Attorneys, Family Law Attorneys
    Gary L Brown
    414 1/2 Walnut St
    Greenville, OH 45331
    (937) 548-4400
    Attorneys,  Accident & Property Damage Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Lega
    Finnarn Theodore
    421 Public Sq
    Greenville, OH 45331
    (937) 548-3240
    Attorneys, Wills, Trusts & Estate Planning Attorneys, General Practice Attorneys, Estate Planning At
    Goubeaux & Brand
    100 Washington Ave
    Greenville, OH 45331
    (937) 548-2211
    General Practice Attorneys, Attorneys, Legal Service Plans
    Hanes,Schipfer, Cooper, Graber, Guillozet & Detling Ltd
    507 S Broadway St
    Greenville, OH 45331
    (937) 548-1157
    Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Probate Law Attorney
    Scott D Rudnick
    121 W 3rd St
    Greenville, OH 45331
    (937) 547-0218
    Automobile Accident Attorneys,  Attorneys,  Accident & Property Damage Attorneys,  Personal Injury L
    Rohrer David A Attorney
    537 S Broadway St # 202
    Greenville, OH 45331
    (937) 548-0010
    Litigation & Tort Attorneys,  Attorneys,  General Practice Attorneys,  Personal Injury Law Attorneys
    David A. Rohrer, Attorney
    537 S Broadway St
    Greenville, OH 45331
    (937) 548-0010
    Business Bankruptcy Law Attorneys, Attorneys, Criminal Law Attorneys, Family Law Attorneys, Business
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US