12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
Protect Your Family Today
with a Free Last Will & Testament
  • Finish and print in minutes!
  • Personalized for You
  • Written by expert Attorneys
  • Valid & Legal for Texas

Advantages and Disadvantages of a Limited Liability Company (LLC) in Zip Code 75209

Advantages and Disadvantages of a Limited Liability Company (LLC) in Zip Code 75209


Grit is often the single-most predictor of success.
 
- Jonah Lehrer


A Limited Liability Company (LLC) is a legal business entity that combines the liability protection of a corporation, the operating flexibility of a Partnership, and the tax benefits of a sole proprietorship. Though the rules for forming an LLC vary by state, it is a popular option for many start-up businesses.

Advantages:

Limited Personal Liability and Exposure

One advantage of an LLC is the limited liability shield, which protects the personal assets of its members. Creditors, typically, cannot hold members personally responsible for the debts and liabilities of the business. Members can only be liable to the extent of their business investment.

Pass-through Taxation

Though there are an array of tax options for a Limited Liability Company; an LLC is generally treated as a "pass-through" entity. Profits and losses pass through the business to the members and are taxed at the personal level. The business itself is not taxed. Reporting is done on members' individual income tax returns. No double taxation with both the company and the owner(s) paying taxes on the earnings of the business.

Operational Flexibility & Simplicity

An LLC is much less formal than a corporation. Record keeping and administrative procedures are not as onerous. There are no quarterly and annual meetings, or tax filings. Neither is there a board of directors.

Legitimacy

Registering a company as an LLC adds credibility to a business, and can help in brand building and marketing to potential clients and suppliers. In addition, the company can enter into contracts on its own, and also acquire property.

Disadvantages:

Higher Fees

An LLC typically pays higher filing fees compared to some other business entities or sole proprietorships. Additionally, some states require annual renewal fees or franchise taxes. It is difficult for an LLC to attract additional investment because the company does not have the ability to issue stocks and bonds. Members have to finance its business activities, or take in private investors. Getting a loan can be tough, especially for small and start-up companies. The company may have to use its business, or personal, assets to guarantee business loans.

Fewer fringe benefits

Employees of an LLC who receive fringe benefits, for example, medical insurance and parking, must treat these benefits as taxable income. This is also true for employees who own more than 2% of an S-corporation. However, employees of a C-corporation do not have to report fringe benefits as taxable income.
 
Download & Print a Free TX Last Will Personalize This Document
Page 1
 
Download & Print a Free TX Living Will Personalize This Document
Page 1
  Answer Easy
Questions
answer simple questions online step by step
Easy Questions, Instant Documents
  • Finish in Minutes
  • Download Immediately
  • Written by Attorneys
  • 100% Guaranteed
  Get Instant Legal
    Documents

Print, save or email your finished legal document immediately!
Last Will & Testament
Related Legal Services near Zip Code 75209
Mark Cohan
4502 W. Lovers Lane
Dallas, TX 75209
(214) 369-9871
Divorce Attorneys, Wills, Trusts & Estate Planning Attorneys, Personal Injury Law Attorneys, Child C
Sobol Neil L
4826 Kelton Dr
Dallas, TX 75209
(214) 951-9466
Attorneys
Atlas Legal Research
PO Box 7066
Dallas, TX 75209
(214) 526-8811
Attorneys Support & Service Bureaus, Attorneys, General Practice Attorneys
Stevenson Jay K
4315 W Lovers Ln
Dallas, TX 75209
(214) 956-8522
General Practice Attorneys, Attorneys, Legal Service Plans
Boone Boone & Phillips LLP
4313 W Lovers Ln
Dallas, TX 75209
(214) 902-8058
General Practice Attorneys, Attorneys
Elliott Richard H
4709 W Lovers Ln # 200
Dallas, TX 75209
(214) 358-7600
General Practice Attorneys, Attorneys, Legal Service Plans
Hosseiny Herrera Law Firm
4236 W Lovers Ln
Dallas, TX 75209
(214) 357-7529
Immigration & Naturalization Consultants, Attorneys, Family Law Attorneys, Immigration Law Attorneys
Harris Litigation Firm
5050 W Lovers Ln
Dallas, TX 75209
(214) 956-7474
Personal Injury Law Attorneys, Insurance Attorneys, Securities & Investment Law Attorneys, Business
Total Attorneys - Divorce
PO Box 273935
Dallas, TX 75209
(972) 552-7223
Divorce Attorneys,  Attorneys,  Family Law Attorneys,  Legal Service Plans
Total Attorneys - Criminal Defense
PO Box 273792
Dallas, TX 75209
(469) 305-7030
Attorneys, Criminal Law Attorneys, Legal Service Plans
Harbeck Co Inc
5600 W Lovers Ln # 116-398
Dallas, TX 75209
(214) 363-6780
Sexual Harassment Attorneys, Attorneys
Wulff Bonnie
5555 Wenonah Dr
Dallas, TX 75209
(214) 522-4050
Attorneys, Legal Service Plans
Ginsberg & Associates
4502 W Lovers Ln
Dallas, TX 75209
(214) 357-4017
Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Civil Litigation & T
Barilich Susan
5600 W Lovers Ln
Dallas, TX 75209
(214) 741-2711
Civil Litigation & Trial Law Attorneys, Attorneys
Berry Briggs Brown & Berkley
4315 W Lovers Ln
Dallas, TX 75209
(214) 350-1888
General Practice Attorneys, Attorneys, Legal Service Plans
Anderson Scott M
4519 W Lovers Ln
Dallas, TX 75209
(214) 350-1116
Attorneys
Lawrence Herrera
4717 W Lovers Ln
Dallas, TX 75209
(214) 526-0334
General Practice Attorneys, Attorneys, Legal Service Plans
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US