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 Aurora, SD

Benefits of a Limited Liability Company (LLC) in Aurora, SD


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 SD 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 SD 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 Aurora, SD
    Beardsley Jensen & VonWald Prof LLC
    4200 Beach Dr Suite 3
    Rapid City, SD 57702
    (605) 593-9356
    Corporation & Partnership Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,
    Beardsley Jensen & Von Wald
    4200 Beach Dr # 3
    Rapid City, SD 57702
    (605) 593-9356
    Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Business Law Attorne
    Bettmann Hogue Law Firm
    1506 Mountain View Rd Ste 101
    Rapid City, SD 57702
    (605) 348-8662
    Attorneys,  Accident & Property Damage Attorneys,  Corporation & Partnership Law Attorneys,  Busines
    Love Todd A
    1506 Mountain View Rd Ste 101
    Rapid City, SD 57702
    (605) 348-8662
    Attorneys, Legal Service Plans
    Lefholz Rodney C
    2640 Jackson Blvd # 3
    Rapid City, SD 57702
    (605) 348-8168
    Attorneys, General Practice Attorneys
    Scovel Al
    2902 W Main St # 1
    Rapid City, SD 57702
    (605) 348-8147
    Civil Litigation & Trial Law Attorneys,  Attorneys,  General Practice Attorneys,  Criminal Law Attor
    Lewis Paul A
    2902 W Main St
    Rapid City, SD 57702
    (605) 721-7896
    Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Legal Service Plans
    Lorina & Cesna LLP
    2650 Jackson Blvd
    Rapid City, SD 57702
    (605) 348-7770
    Attorneys, Legal Service Plans
    Burkart John H CPA
    2630 Jackson Blvd # 201
    Rapid City, SD 57702
    (605) 348-7721
    Accountants-Certified Public,  Accounting Services,  Attorneys,  Tax Attorneys,  Legal Service Plans
    Grosshans Roland E
    2040 W Main St # 306
    Rapid City, SD 57702
    (605) 348-7663
    Attorneys, General Practice Attorneys
    Bernard Gregory J
    4200 Beach Dr # 1
    Rapid City, SD 57702
    (605) 348-7516
    Attorneys
    Braun Lonnie R
    4200 Beach Dr # 1
    Rapid City, SD 57702
    (605) 348-7516
    Attorneys
    Cushman Carla R
    4200 Beach Dr
    Rapid City, SD 57702
    (605) 348-7516
    Attorneys, Legal Service Plans
    Burke John W
    4200 Beach Dr # 1
    Rapid City, SD 57702
    (605) 348-7516
    Attorneys, Legal Service Plans
    Johnson Glen Attorney
    4020 Jackson Blvd Ste 3
    Rapid City, SD 57702
    (605) 348-7300
    Attorneys
    Eiesland Gregory A
    4020 Jackson Blvd # 1
    Rapid City, SD 57702
    (605) 348-7300
    Attorneys,  Medical Law Attorneys,  Elder Law Attorneys,  Accident & Property Damage Attorneys,  Cor
    Eiesland Aaron D
    4020 Jackson Blvd # 1
    Rapid City, SD 57702
    (605) 348-7300
    Attorneys
    Dewell Kenneth R Atty
    4020 Jackson Blvd
    Rapid City, SD 57702
    (605) 348-7300
    Attorneys, Legal Service Plans
    Cameron Erin C
    4200 Beach Dr Ste 4
    Rapid City, SD 57702
    (605) 721-7230
    Attorneys, Legal Service Plans
    Riggins Kylie M
    4200 Beach Dr # 4
    Rapid City, SD 57702
    (605) 721-7230
    Adoption Law Attorneys, Attorneys, Family Law Attorneys
    Viken Linda Lea
    4200 Beach Dr # 4
    Rapid City, SD 57702
    (605) 721-7230
    Attorneys
    Olson James W
    2640 Jackson Blvd # 1
    Rapid City, SD 57702
    (605) 342-7090
    Attorneys
    Wilson Olson & Nash PC
    2640 Jackson Blvd Ste 1
    Rapid City, SD 57702
    (605) 342-7090
    Attorneys, Corporation & Partnership Law Attorneys, Business Law Attorneys
    Midland Group
    1818 W Fulton St # 102
    Rapid City, SD 57702
    (605) 355-6900
    Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US