12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
 
FINANCIAL & MARITAL

Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
 

Advantages and Disadvantages of a Limited Liability Company (LLC) in Dacoma, OK

Advantages and Disadvantages of a Limited Liability Company (LLC) in Dacoma, OK


Grit is often the single-most predictor of success.
 
- Jonah Lehrer


A Limited Liability Company (LLC) is a legal business entity that combines the liability protection of a corporation, the operating flexibility of a Partnership, and the tax benefits of a sole proprietorship. Though the rules for forming an LLC vary by state, it is a popular option for many start-up businesses.

Advantages:

Limited Personal Liability and Exposure

One advantage of an LLC is the limited liability shield, which protects the personal assets of its members. Creditors, typically, cannot hold members personally responsible for the debts and liabilities of the business. Members can only be liable to the extent of their business investment.

Pass-through Taxation

Though there are an array of tax options for a Limited Liability Company; an LLC is generally treated as a "pass-through" entity. Profits and losses pass through the business to the members and are taxed at the personal level. The business itself is not taxed. Reporting is done on members' individual income tax returns. No double taxation with both the company and the owner(s) paying taxes on the earnings of the business.

Operational Flexibility & Simplicity

An LLC is much less formal than a corporation. Record keeping and administrative procedures are not as onerous. There are no quarterly and annual meetings, or tax filings. Neither is there a board of directors.

Legitimacy

Registering a company as an LLC adds credibility to a business, and can help in brand building and marketing to potential clients and suppliers. In addition, the company can enter into contracts on its own, and also acquire property.

Disadvantages:

Higher Fees

An LLC typically pays higher filing fees compared to some other business entities or sole proprietorships. Additionally, some states require annual renewal fees or franchise taxes. It is difficult for an LLC to attract additional investment because the company does not have the ability to issue stocks and bonds. Members have to finance its business activities, or take in private investors. Getting a loan can be tough, especially for small and start-up companies. The company may have to use its business, or personal, assets to guarantee business loans.

Fewer fringe benefits

Employees of an LLC who receive fringe benefits, for example, medical insurance and parking, must treat these benefits as taxable income. This is also true for employees who own more than 2% of an S-corporation. However, employees of a C-corporation do not have to report fringe benefits as taxable income.
 
Personalize & Print a Free OK 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 OK 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 Dacoma, OK
Mc Carty Kevin E
3108 E Hefner Rd
Oklahoma City, OK 73131
(405) 848-9600
Attorneys, Legal Service Plans
Hiltgen & Brewer PC
9505 N Kelley Ave
Oklahoma City, OK 73131
(405) 605-9000
Attorneys, Product Liability Law Attorneys
Bruehl Curtis
14005 N Eastern AVE
Oklahoma City, OK 73131
(405) 606-7899
Attorneys
Coldiron, Brent D
1800 E Memorial Rd Ste 106
Oklahoma City, OK 73131
(405) 478-5655
Family Law Attorneys,  Estate Planning, Probate, & Living Trusts,  Elder Law Attorneys,  Guardians
Ihrig Law Firm
107 W Blackwell Ave
Blackwell, OK 74631
(580) 363-4300
Divorce Attorneys,  Estate Planning Attorneys,  Family Law Attorneys,  General Practice Attorneys,  
Ditto Steven M
1800 E Memorial Rd
Oklahoma City, OK 73131
(405) 478-3888
Attorneys, General Practice Attorneys, Legal Service Plans
Boersma Law Firm
111 W Blackwell Ave
Blackwell, OK 74631
(580) 363-3323
General Practice Attorneys, Attorneys
Hutton Mark B
1800 E Memorial Rd Ste 106
Oklahoma City, OK 73131
(405) 445-3017
Attorneys
Barnes F. Smith PC
9208 N Kelley Ave
Oklahoma City, OK 73131
(405) 283-2892
Attorneys, Business Law Attorneys, Contract Law Attorneys, Real Estate Attorneys, Wills, Trusts & Es
Shuart Scott
206 W Blackwell Ave
Blackwell, OK 74631
(580) 363-2439
Attorneys
Silas R. Lyman II Law Office
1800 E Memorial Rd Suite 106
Oklahoma City, OK 73131
(405) 323-2262
Attorneys,  Child Custody Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  DUI & DWI Atto
Rodgers James R
105 N Main St
Blackwell, OK 74631
(580) 762-2072
Attorneys, Legal Service Plans
Denton David O
124 S Main St
Blackwell, OK 74631
(580) 363-1528
Attorneys
Menzer Law Offices
211 W Blackwell Ave
Blackwell, OK 74631
(580) 363-0800
Attorneys, Bankruptcy Law Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US