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 Scranton, PA

Benefits of a Limited Liability Company (LLC) in Scranton, 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 Scranton, PA
    AA Pisancyn Michael J Attorney
    524 Spruce St
    Scranton, PA 18503
    (570) 327-9999
    Accident & Property Damage Attorneys,  Attorneys,  Corporation & Partnership Law Attorneys,  Civil L
    Jamie A Dench
    410 Jefferson Ave
    Scranton, PA 18505
    (570) 558-9987
    Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
    Giombetti Kim A
    222 Wyoming Ave
    Scranton, PA 18503
    (570) 346-9929
    Criminal Law Attorneys, Attorneys, Legal Service Plans
    Mazzeo Frank A Attorney
    327 N Washington Ave Ste 506
    Scranton, PA 18503
    (570) 341-9860
    Collection Law Attorneys, Attorneys, Collection Agencies
    Haggerty, McDonnell and O'Brien
    203 Franklin Ave
    Scranton, PA 18503
    (570) 344-9845
    Accident & Property Damage Attorneys, Attorneys, Labor & Employment Law Attorneys, Business Law Atto
    Matthew T Comerford, Esq
    205 N Washington Ave Suite 1
    Scranton, PA 18503
    (888) 959-9819
    Attorneys,  Drug Charges Attorneys,  Personal Injury Law Attorneys,  Accident & Property Damage Atto
    Gallagher Terrence V
    416 Jefferson Ave
    Scranton, PA 18510
    (570) 347-9816
    Accident & Property Damage Attorneys,  Attorneys,  General Practice Attorneys,  Legal Service Plans
    Lenahan & Dempsey, P.C.
    116 N Washington Ave Ste 400
    Scranton, PA 18503
    (570) 383-9699
    Legal Service Plans,  Attorneys,  Labor & Employment Law Attorneys,  Civil Litigation & Trial Law At
    Lenahan And Dempsey P.C.
    116 N Washington Ave
    Scranton, PA 18503
    (570) 383-9699
    Accident & Property Damage Attorneys,  Attorneys,  Civil Litigation & Trial Law Attorneys,  Personal
    Employment Law Firm
    312 Adams Ave
    Scranton, PA 18503
    (570) 963-9675
    General Practice Attorneys, Attorneys
    Josielevski Ben
    116 N Washington Ave # 2J
    Scranton, PA 18503
    (570) 344-9633
    Arbitration Services,  Attorneys,  Mediation Services,  Legal Service Plans
    Murphy Patrick J
    233 Penn Ave
    Scranton, PA 18503
    (570) 344-9444
    Attorneys
    Murphy Piazza & Genello P C Attorneys
    233 Penn Ave
    Scranton, PA 18503
    (570) 344-9444
    General Practice Attorneys, Attorneys, Legal Service Plans
    Durkin Lawrence A
    538 Spruce St # 800
    Scranton, PA 18503
    (570) 344-9440
    Environment & Natural Resources Law Attorneys, Attorneys
    Jones Jr Thomas J
    410 Spruce St Ste 301
    Scranton, PA 18503
    (570) 342-9296
    Gregorowicz James P
    108 N Washington Ave # 705
    Scranton, PA 18503
    (570) 969-9050
    Attorneys,  Family Law Attorneys,  Social Security & Disability Law Attorneys,  Wills, Trusts & Est
    Greguorowigz Jamels Patt
    108 N Washington Ave
    Scranton, PA 18503
    (570) 969-9050
    Attorneys, Family Law Attorneys, Social Security & Disability Law Attorneys, Wills, Trusts & Estate
    Marcin Frank A
    811 Mulberry St
    Scranton, PA 18510
    (570) 347-9050
    General Practice Attorneys, Attorneys, Legal Service Plans
    Marcmn Law Office
    811 Mulberry St
    Scranton, PA 18510
    (570) 347-9050
    General Practice Attorneys, Attorneys
    O'Malley Todd
    201 Franklin Ave # 1
    Scranton, PA 18503
    (570) 253-9000
    Attorneys, Social Security & Disability Law Attorneys, Corporation & Partnership Law Attorneys, Lega
    Scacchitti Edmund Jdgn
    400 Spruce St
    Scranton, PA 18503
    (570) 343-9000
    General Practice Attorneys, Attorneys, Legal Service Plans
    Coury John J
    108 N Washington Ave # 300
    Scranton, PA 18503
    (570) 347-8951
    Attorneys,  Accident & Property Damage Attorneys,  Employee Benefits & Worker Compensation Attorneys
    Jensen Donald W
    538 Spruce St # 730
    Scranton, PA 18503
    (570) 344-8723
    Attorneys, Legal Service Plans
    Affordable DUI
    224 Adams Ave
    Scranton, PA 18503
    (570) 346-8700
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US