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 Woonsocket, RI

Benefits of a Limited Liability Company (LLC) in Woonsocket, RI


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 RI 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 RI 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 Woonsocket, RI
    Marasco, Joseph P - Marasco & Nesselbush Llp
    603 Park Ave
    Woonsocket, RI 02895
    (401) 762-9800
    Attorneys,  General Practice Attorneys,  Legal Service Plans,  Real Estate Attorneys,  Personal Inju
    Marasco Joseph
    2168 Diamond Hill Rd
    Woonsocket, RI 02895
    (401) 762-9800
    Attorneys, Legal Service Plans
    Lavoie Mariam A
    2168 Diamond Hill Rd Ste 3A
    Woonsocket, RI 02895
    (401) 762-9800
    Attorneys
    Dorsey Paul E
    2168 Diamond Hill Rd Ste 3A
    Woonsocket, RI 02895
    (401) 762-9800
    Attorneys
    Grimm Mark H
    2168 Diamond Hill Rd Ste 3A
    Woonsocket, RI 02895
    (401) 762-9800
    Attorneys
    Wilson Joseph P
    2168 Diamond Hill Rd Ste 3A
    Woonsocket, RI 02895
    (401) 762-9800
    Attorneys
    Heroux Keith
    1160 Park Ave
    Woonsocket, RI 02895
    (401) 769-9400
    Attorneys
    Toupin Richard A
    191 Social St # 620
    Woonsocket, RI 02895
    (401) 766-9300
    Attorneys, General Practice Attorneys, Title Companies
    Landry Kevin P
    1028 Park Avenue Suite 103
    Woonsocket, RI 02895
    (401) 766-9000
    Attorneys,  Malpractice Law Attorneys,  Accident & Property Damage Attorneys,  Workers Compensation
    Brien John
    64 Hamlet Ave
    Woonsocket, RI 02895
    (401) 762-8280
    Attorneys, Legal Service Plans
    Lamagna Joseph A
    2417 Mendon Rd
    Woonsocket, RI 02895
    (401) 724-6700
    Attorneys
    Katz Henry H
    2417 Mendon Rd
    Woonsocket, RI 02895
    (401) 724-6700
    Attorneys
    Gariepy Lloyd R Law Office
    198 Dawn Blvd
    Woonsocket, RI 02895
    (401) 766-6160
    Attorneys, General Practice Attorneys, Justice Courts
    Mcfadden Ryanna T
    603 Park Ave
    Woonsocket, RI 02895
    (401) 762-5900
    Attorneys, Legal Service Plans
    Ackerman Richard R
    191 Social St # 620
    Woonsocket, RI 02895
    (401) 766-5800
    Attorneys, Legal Service Plans
    Sparks Thomas
    PO Box 3500
    Woonsocket, RI 02895
    (401) 766-5551
    Attorneys
    Jos A Lamagna
    2417 Mendon Rd
    Woonsocket, RI 02895
    (401) 421-5498
    Attorneys
    Hope Larder Robert
    267 Blackstone St
    Woonsocket, RI 02895
    (401) 762-4550
    Attorneys, Title Companies, Legal Service Plans
    Carroll Joseph
    191 Social St # 280
    Woonsocket, RI 02895
    (401) 766-4118
    Attorneys, Legal Service Plans, Justice Courts
    Bagus David D
    603 Park Ave
    Woonsocket, RI 02895
    (401) 769-3700
    Attorneys
    Roszkowski Joseph J
    1625 Diamond Hill Rd Ste 201
    Woonsocket, RI 02895
    (401) 769-3447
    Attorneys
    Teixeira Armand A Lwyr
    1625 Diamond Hill Rd
    Woonsocket, RI 02895
    (401) 769-3447
    Attorneys
    Zimmerman Roszkowski and Brenner
    1625 Diamond Hill Rd
    Woonsocket, RI 02895
    (401) 769-3447
    Attorneys, Legal Service Plans
    P K Law
    191 Social St # 800
    Woonsocket, RI 02895
    (401) 766-2780
    Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US