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 Big Rock, TN

Benefits of a Limited Liability Company (LLC) in Big Rock, TN


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 TN 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 TN 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 Big Rock, TN
    East Tennessee Title Insurance Agency
    8930 Cross Park Dr
    Knoxville, TN 37923
    (865) 225-9655
    Title Companies,  Insurance,  Attorneys,  Escrow Service,  Financial Services
    Fox & Farmer
    8900 Executive Park Dr
    Knoxville, TN 37923
    (865) 531-9400
    Attorneys, General Practice Attorneys, Legal Service Plans
    AGF Personnel, Inc.
    9040 Executive Park Dr
    Knoxville, TN 37923
    (865) 531-9181
    Employee Benefits & Worker Compensation Attorneys, Attorneys, Legal Service Plans
    Jessica J. Johnson
    310 Gallant Fox Way
    Knoxville, TN 37923
    (865) 558-9144
    Personal Injury Law Attorneys
    Eley & Wolfenbarger P
    9040 Executive Park Dr
    Knoxville, TN 37923
    (865) 531-9111
    Personal Injury Law Attorneys, Insurance Attorneys, Attorneys
    Galli James G
    408 N Cedar Bluff Rd Ste 556
    Knoxville, TN 37923
    (865) 566-9000
    General Practice Attorneys, Attorneys, Legal Service Plans
    Crane, Stewart M
    9111 Cross Park Dr
    Knoxville, TN 37923
    (865) 539-8282
    Attorneys, Wills, Trusts & Estate Planning Attorneys
    Dan Rafael Solla
    509 N. Cedar Bluff Rd. Suite 4
    Knoxville, TN 37923
    (865) 221-8240
    Child Custody Attorneys, DUI & DWI Attorneys, Family Law Attorneys, Juvenile Law Attorneys, Attorney
    Sexton And Wykoff
    9051 Executive Park Dr
    Knoxville, TN 37923
    (865) 691-7900
    Personal Injury Law Attorneys,  Attorneys,  Social Security & Disability Law Attorneys,  Bankruptcy
    Stewart Craig H
    8930 Cross Park Dr
    Knoxville, TN 37923
    (865) 690-7811
    General Practice Attorneys, Attorneys, Legal Service Plans
    Saffa Law Group
    320 N Cedar Bluff Rd
    Knoxville, TN 37923
    (865) 470-7771
    Legal Service Plans,  Bankruptcy Services,  Bankruptcy Law Attorneys,  Personal Injury Law Attorneys
    Coffman Ronald
    244 N Peters Rd
    Knoxville, TN 37923
    (865) 694-6165
    Attorneys, General Practice Attorneys
    Darren E. Ridenour
    8930 Cross Park Dr Ste 3
    Knoxville, TN 37923
    (865) 686-5811
    Attorneys,  Labor & Employment Law Attorneys,  Accident & Property Damage Attorneys,  Corporation &
    Anastacia W. Shelton,
    118 N. Peters Rd., Ste. 257
    Knoxville, TN 37923
    (865) 237-5373
    Family Law Attorneys,  Juvenile Law Attorneys,  Adoption Law Attorneys,  Child Custody Attorneys,  C
    Olive Sandra G
    9111 Cross Park Dr
    Knoxville, TN 37923
    (865) 690-5300
    General Practice Attorneys, Attorneys, Legal Service Plans
    Della Rodolfa & Cole
    120 Suburban Rd
    Knoxville, TN 37923
    (865) 247-4920
    Attorneys
    Inman Heather G
    9111 Cross Park Dr # E290
    Knoxville, TN 37923
    (865) 470-4770
    General Practice Attorneys, Attorneys, Legal Service Plans
    Wolfe Williams & Rutherford
    244 N Peters Rd
    Knoxville, TN 37923
    (865) 637-4576
    Attorneys, Social Security & Disability Law Attorneys, General Practice Attorneys, Legal Service Pla
    Worthington Carole L
    861 Ebenezer Rd
    Knoxville, TN 37923
    (865) 540-4400
    General Practice Attorneys, Attorneys
    Middleton, Denna
    9111 Cross Park Dr
    Knoxville, TN 37923
    (865) 470-4288
    Attorneys,  Legal Service Plans,  Bankruptcy Law Attorneys,  Family Law Attorneys,  Divorce Attorney
    Shoemaker, C Edwin
    9111 Cross Park Dr
    Knoxville, TN 37923
    (865) 470-4250
    Credit & Debt Counseling,  Bankruptcy Law Attorneys,  Consumer Law Attorneys,  Attorneys,  Small Bus
    Brown, Alexander Criminal Defense Attorney
    212 S Peters Rd
    Knoxville, TN 37923
    (865) 556-4231
    Criminal Law Attorneys, Attorneys, General Practice Attorneys
    Knox Patents Kulaga Law Office
    9111 Cross Park Dr Building D, Suite 200
    Knoxville, TN 37923
    (865) 470-4212
    General Practice Attorneys, Patent, Trademark & Copyright Law Attorneys, Attorneys
    J Nolan Sharbel
    9008 Shallowford Rd
    Knoxville, TN 37923
    (865) 694-4111
    Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US