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 New Enterprise, PA

Benefits of a Limited Liability Company (LLC) in New Enterprise, 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 New Enterprise, PA
    Peter N Munsing
    435 Maugers Mill Rd
    Pottstown, PA 19464
    (610) 326-9955
    Accident & Property Damage Attorneys,  Attorneys,  General Practice Attorneys,  Legal Service Plans
    Edward A Skypala Law Offices
    224 King St
    Pottstown, PA 19464
    (610) 489-9778
    Civil Litigation & Trial Law Attorneys,  Attorneys,  Accident & Property Damage Attorneys,  Automobi
    Skypala Edward A
    224 King St
    Pottstown, PA 19464
    (610) 489-9778
    Civil Litigation & Trial Law Attorneys, Attorneys, General Practice Attorneys, Criminal Law Attorney
    Advice About Malpractice Attys
    935 N Hanover St
    Pottstown, PA 19464
    (610) 326-9333
    Bankruptcy Law Attorneys, General Practice Attorneys, Legal Service Plans
    Delaware County Accident Lawyers
    1489 Baltimore Pike
    Springfield, PA 19064
    (610) 490-9310
    Accident & Property Damage Attorneys,  Automobile Accident Attorneys,  Labor & Employment Law Attorn
    Baggiano Catherine M
    120 Hillview Dr
    Springfield, PA 19064
    (610) 328-9200
    Attorneys, Legal Service Plans
    Breidenbach Scott
    2158 Sunnyside Ave
    Pottstown, PA 19464
    (610) 327-9090
    Attorneys, Corporation & Partnership Law Attorneys, General Practice Attorneys, Legal Service Plans,
    Cutting Cherelle
    2612 Allison Dr
    Pottstown, PA 19464
    (484) 524-8575
    General Practice Attorneys
    AFRICANBIZBYZIP
    491 Baltimore Pike # 447
    Springfield, PA 19064
    (484) 461-8218
    Immigration Law Attorneys, Internet Marketing & Advertising, Hair Braiding, Grocery Stores
    Siegel & Gallagher Law Firm
    237 Baltimore Pike
    Springfield, PA 19064
    (484) 472-8039
    General Practice Attorneys, Attorneys, Legal Service Plans
    Scherline and Associates
    512 E Walnut St
    Nazareth, PA 18064
    (610) 258-8000
    Accident & Property Damage Attorneys,  Attorneys,  Criminal Law Attorneys,  Malpractice Law Attorney
    Hennessey & Hennessey Attorneys
    535 E High St
    Pottstown, PA 19464
    (610) 326-7700
    General Practice Attorneys, Attorneys, Legal Service Plans
    Kurtas Patrick J
    934 E High St
    Pottstown, PA 19464
    (610) 323-7700
    Attorneys, Legal Service Plans
    Dewalt Harold J
    8 N Main St
    Nazareth, PA 18064
    (610) 759-7600
    Attorneys, Legal Service Plans
    Stauffer Robert L
    635 E High St
    Pottstown, PA 19464
    (610) 323-7464
    Bankruptcy Law Attorneys, Attorneys, Legal Service Plans
    Scafetta Joseph Jr Attorney
    158 N Hanover St
    Pottstown, PA 19464
    (610) 323-7436
    Employee Benefits & Worker Compensation Attorneys, Attorneys, Corporation & Partnership Law Attorney
    WOLF BALDWIN AND ASSOCIATES
    158 N Hanover St
    Pottstown, PA 19464
    (610) 323-7436
    Accident & Property Damage Attorneys,  Attorneys,  Family Law Attorneys,  Probate Law Attorneys,  Wi
    Wolf, Baldwin & Associates, P.C.
    800 E High St
    Pottstown, PA 19464
    (610) 323-7436
    Estate Planning Attorneys, Attorneys, Family Law Attorneys, Wills, Trusts & Estate Planning Attorney
    Crocker Mary C
    1296 E High St
    Pottstown, PA 19464
    (610) 323-5700
    Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Wills, Trusts & Estate Planning Attorne
    Crocker Henry T
    1296 E High St
    Pottstown, PA 19464
    (610) 323-5700
    Attorneys, Criminal Law Attorneys, Family Law Attorneys, Wills, Trusts & Estate Planning Attorneys,
    Top Bankruptcy Law Clinic
    152 E High St Suite 100
    Pottstown, PA 19464
    (866) 354-5525
    Bankruptcy Law Attorneys, Bankruptcy Services
    Ross Stephen
    152 E High St # 100
    Pottstown, PA 19464
    (610) 323-5300
    Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Estate Planning, Probate, & Living Tru
    Stephen Ross Law Office
    152 E High St # 100
    Pottstown, PA 19464
    (610) 323-5300
    Attorneys, Criminal Law Attorneys, Family Law Attorneys, Estate Planning, Probate, & Living Trusts,
    Martin Banks Pond Lehocky and Wilson
    2120 E High St
    Pottstown, PA 19464
    (610) 970-5200
    Corporation & Partnership Law Attorneys, Attorneys, Legal Service Plans, Employee Benefits & Worker
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US