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 Doylestown, PA

Benefits of a Limited Liability Company (LLC) in Doylestown, PA


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 PA 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 PA 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 Doylestown, PA
    Emmons Greg B Atty
    1 Settlers Dr
    Doylestown, PA 18901
    (215) 348-9815
    Real Estate Attorneys, Attorneys, Legal Service Plans
    Rodriguez-Mart Maria J
    114 N Main St
    Doylestown, PA 18901
    (215) 230-9744
    Family Law Attorneys, Attorneys, Legal Service Plans
    Tillger Alice J
    645 E Butler Ave
    Doylestown, PA 18901
    (215) 230-9600
    Attorneys, Legal Service Plans
    Bucks County Law Reporter
    135 E State St
    Doylestown, PA 18901
    (215) 348-9413
    Attorneys, Estate Planning, Probate, & Living Trusts, Attorneys Referral & Information Service
    Applebaum and Associates
    107 E Court St
    Doylestown, PA 18901
    (215) 230-9330
    Personal Injury Law Attorneys, Attorneys
    Fioravanti & Knight
    93 E Court St
    Doylestown, PA 18901
    (215) 348-9133
    Attorneys Referral & Information Service,  Attorneys,  Criminal Law Attorneys,  General Practice Att
    Mabon William F
    124 E Court St
    Doylestown, PA 18901
    (215) 345-9100
    Accident & Property Damage Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  L
    Gould Law Assoc
    20 S Pine St
    Doylestown, PA 18901
    (215) 345-8933
    Real Estate Attorneys, Attorneys, Legal Service Plans, Business Law Attorneys
    Mc Namara, James M - Mc Namara Bolla Williams
    116 E Court St
    Doylestown, PA 18901
    (215) 345-8888
    Attorneys,  Labor & Employment Law Attorneys,  Business Law Attorneys,  Real Estate Attorneys,  Pers
    Panzer, Thomas F Mc Namara Bolla Williams
    116 E Court St
    Doylestown, PA 18901
    (215) 345-8888
    Attorneys, Corporation & Partnership Law Attorneys, Legal Service Plans, Employee Benefits & Worker
    Repko, Robert T Mc Namara Bolla Williams
    116 E Court St
    Doylestown, PA 18901
    (215) 345-8888
    Family Law Attorneys, Attorneys, Legal Service Plans
    Scott L Feldman
    78 S Main St
    Doylestown, PA 18901
    (215) 230-8800
    Attorneys, Labor & Employment Law Attorneys, Civil Litigation & Trial Law Attorneys, Real Estate Att
    Wassmer & Hill
    171 S Main St
    Doylestown, PA 18901
    (215) 348-8610
    Business Law Attorneys,  General Practice Attorneys,  Estate Planning Attorneys,  Legal Service Plan
    Boockvar & Yeager Attorneys
    1980 S Easton Rd Ste 220
    Doylestown, PA 18901
    (215) 345-8581
    Social Security & Disability Law Attorneys, Attorneys, Labor & Employment Law Attorneys, Wills, Trus
    Matos, Carmen R - Matos Carmen R
    40 E Court St
    Doylestown, PA 18901
    (215) 345-8550
    DUI & DWI Attorneys, Attorneys, Criminal Law Attorneys, Legal Service Plans
    Mazullo & Murphy
    8 E Court St # 1
    Doylestown, PA 18901
    (215) 348-8484
    Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Business Law Attorneys,  Real Estate Attorney
    Groff Meg
    279 S Main St # A
    Doylestown, PA 18901
    (215) 230-8001
    Family Law Attorneys, Attorneys, Legal Service Plans
    Shelly Law Offices, LLC
    70 W. Oakland Ave., Suite 208
    Doylestown, PA 18901
    (267) 454-7940
    Personal Injury Law Attorneys, Attorneys
    Steven H. Kitty
    44 E Court St # 3
    Doylestown, PA 18901
    (215) 348-7719
    Legal Service Plans, Franchise Law Attorneys, Employee Benefits & Worker Compensation Attorneys, Att
    Totaro Jr Samuel C
    87 N Broad St
    Doylestown, PA 18901
    (215) 348-7700
    Attorneys,  Personal Injury Law Attorneys,  Legal Service Plans,  Wrongful Death Attorneys,  Acciden
    Webster Sara
    87 N Broad St
    Doylestown, PA 18901
    (215) 348-7700
    Attorneys, Personal Injury Law Attorneys, Legal Service Plans, Wrongful Death Attorneys, Accident &
    Antheil III William L
    131 W State St # A
    Doylestown, PA 18901
    (215) 230-7500
    General Practice Attorneys, Attorneys, Legal Service Plans
    Fox Rothschild LLP
    102 N Main St
    Doylestown, PA 18901
    (215) 345-7500
    General Practice Attorneys, Attorneys, Legal Service Plans
    Cotlar Steven A
    23 W Court St
    Doylestown, PA 18901
    (215) 345-7310
    Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US