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 Cordova, TN

Benefits of a Limited Liability Company (LLC) in Cordova, 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 Cordova, TN
    Alliance Title & Escrow, LLC
    8289 Cordova Rd
    Cordova, TN 38016
    901 333 7999
    Real Estate Attorneys, Title Companies
    Poe, Ronald E
    261 Germantown Bend Cv
    Cordova, TN 38018
    (901) 758-8200
    Attorneys, General Practice Attorneys, Insurance, Legal Service Plans
    Jackson Shields Yeiser Holt
    262 German Oak Dr
    Cordova, TN 38018
    (901) 754-8001
    Attorneys, Construction Law Attorneys, Labor & Employment Law Attorneys
    Floyd Law Firm PLC
    310 Germantown Bend Cv Ste 104
    Cordova, TN 38018
    (901) 758-6120
    General Practice Attorneys, Attorneys, Legal Service Plans
    The Williams Firm PC
    60 Germantown Ct Ste 200
    Cordova, TN 38018
    (901) 692-5500
    Real Estate Attorneys
    Kyles Keith C
    153 Country Pl
    Cordova, TN 38018
    (901) 753-5459
    Attorneys
    Patterson Chris
    1665 Bonnie Ln # 106
    Cordova, TN 38016
    (901) 372-5003
    General Practice Attorneys, Attorneys, Legal Service Plans
    Armstrong Kendra
    8620 Trinity Rd Ste 203
    Cordova, TN 38018
    (901) 624-4642
    General Practice Attorneys, Attorneys, Legal Service Plans
    Cohn Law Firm
    291 Germantown Bend Cv
    Cordova, TN 38018
    (901) 244-3400
    Attorneys, Bankruptcy Law Attorneys
    Title Assurance & Escrow, Inc.
    8121 Walnut Run, Suite 200
    Cordova, TN 38018
    (901) 737-3332
    Accident & Property Damage Attorneys,  Real Estate Attorneys,  General Practice Attorneys,  Title &
    Brownlow Law Offices
    8342 Macon Rd
    Cordova, TN 38018
    (901) 755-2552
    General Practice Attorneys, Attorneys
    Daniel Loyd Taylor Law Offices
    8304 Walnut Grove Rd Ste 200
    Cordova, TN 38018
    (901) 624-2244
    General Practice Attorneys, Attorneys, Legal Service Plans
    Sanders Law Firm
    7065 Ireland Dr
    Cordova, TN 38018
    (901) 383-2006
    General Practice Attorneys, Attorneys
    I.B. Warner
    2189 Carrollwood Ln
    Cordova, TN 38016
    (901) 679-1740
    Divorce Attorneys, Family Law Attorneys, Criminal Law Attorneys, Attorneys, Legal Service Plans
    Anderson Sharon K
    46 Timber Creek Dr
    Cordova, TN 38018
    (901) 757-1600
    Attorneys, Legal Service Plans
    Beaty Douglas R Esq
    8130 Country Village Dr
    Cordova, TN 38016
    (901) 680-0888
    Attorneys, Real Estate Title Service, Title Companies
    Lawrence Magdovitz
    8342 Macon Rd
    Cordova, TN 38018
    (901) 737-0500
    General Practice Attorneys, Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US