Find More Articles
12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents™
 
Protect Your Family & Assets Today
with a Free Last Will & Testament
  • Finish and print in minutes!
  • Personalized for You
  • Written by expert Attorneys
  • Valid & Legal for Ohio
 Start My Free Document 

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

Benefits of a Limited Liability Company (LLC) in Lima, 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
     
    Download & Print a Free OH Living Will Personalize This Document
    Page 1
      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 Lima, OH
    Farley K. Banks
    311 E Market St Ste 201
    Lima, OH 45801
    (419) 222-9933
    Attorneys,  Legal Service Plans,  Criminal Law Attorneys,  Family Law Attorneys,  Divorce Attorneys,
    Jacobs Law Office
    558 W Spring St
    Lima, OH 45801
    (877) 912-9720
    Attorneys, Commercial Law Attorneys
    Bucher Andrew R
    1728 Allentown Rd
    Lima, OH 45805
    (419) 227-9595
    James F. Blair
    2485 Houx Parkway
    Lima, OH 45804
    (567) 940-9518
    Probate Law Attorneys, Real Estate Attorneys, Wills, Trusts & Estate Planning Attorneys
    Nyers Athena
    119 N West St # 102A
    Lima, OH 45801
    (419) 999-9412
    Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Accident & Property Damage Attorneys,  D
    Nyers Athena
    119 N West St # 102
    Lima, OH 45801
    (419) 999-9412
    Mon-Fri 8:30am-5pm, Appointments Available
    Goodin Law Ltd
    121 W High St # 1104
    Lima, OH 45801
    (419) 991-9332
    Attorneys, Legal Service Plans
    Rth Processing
    121 W High St
    Lima, OH 45801
    (419) 879-9273
    General Practice Attorneys, Attorneys
    Bruce Comly French Attorney
    200 W North St Ste B
    Lima, OH 45801
    (419) 222-9134
    Attorneys, General Practice Attorneys
    Dodson Law Office
    1417 Shawnee Rd
    Lima, OH 45805
    (419) 999-9000
    Insurance Attorneys,  Attorneys,  Criminal Law Attorneys,  Personal Injury Law Attorneys,  Legal Ser
    Dyer Garofalo Mann & Schultz
    2727 Harding Hwy
    Lima, OH 45804
    (888) 681-8709
    Accident & Property Damage Attorneys,  Attorneys,  Civil Litigation & Trial Law Attorneys,  Personal
    Cory Frank B
    2240 W High St
    Lima, OH 45805
    (419) 223-8656
    General Practice Attorneys, Attorneys
    Christi Brown Attorney
    212 N Elizabeth St #310
    Lima, OH 45801
    (866) 945-7828
    Attorneys, Litigation & Tort Attorneys
    Bradley Law Office
    119 N West St Ste 103
    Lima, OH 45801
    (419) 227-7775
    Child Custody Attorneys, Attorneys, Family Law Attorneys
    Geiger Anthony L Atty
    420 S Jameson Ave
    Lima, OH 45805
    (419) 225-7718
    General Practice Attorneys, Attorneys
    Maisch Victoria U
    212 N Elizabeth St # 410
    Lima, OH 45801
    (419) 228-7640
    Civil Litigation & Trial Law Attorneys, Attorneys
    Allen County Bar Assn
    306 N Main St
    Lima, OH 45801
    (419) 224-7534
    Attorneys, Attorneys Referral & Information Service, Legal Service Plans
    Badnell David C
    1519 Allentown Rd
    Lima, OH 45805
    (419) 222-7362
    Attorneys,  Family Law Attorneys,  Legal Service Plans,  Bankruptcy Law Attorneys
    Elk & Elk Assoc Co
    209 Blackburn Dr
    Lima, OH 45805
    (419) 222-6677
    Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
    Lawson III Walter M
    119 N West St # 103
    Lima, OH 45801
    (419) 227-6506
    Employee Benefits & Worker Compensation Attorneys, Attorneys, Labor & Employment Law Attorneys
    Cory, Meredith, Witter, Anderson & Smith Legal Professional Association
    101 N Elizabeth St #607
    Lima, OH 45801
    (419) 228-6365
    Attorneys,  Criminal Law Attorneys,  Probate Law Attorneys,  Social Security & Disability Law Attorn
    Huffman Kelley Becker & Brock LLC
    540 W Market St
    Lima, OH 45801
    (855) 879-6298
    Accident & Property Damage Attorneys,  Attorneys,  Criminal Law Attorneys,  Personal Injury Law Atto
    King James C. Attorney
    212 N Elizabeth St 1st Floor
    Lima, OH 45801
    (855) 278-5951
    Attorneys, Civil Litigation & Trial Law Attorneys, Criminal Law Attorneys
    Mihlbaugh Michael P
    440 S Main St
    Lima, OH 45804
    (419) 229-5886
    Attorneys,  Accident & Property Damage Attorneys,  General Practice Attorneys,  Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US