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 Alanreed, TX

Benefits of a Limited Liability Company (LLC) in Alanreed, TX


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 TX 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 TX 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 Alanreed, TX
    Gonzalez Law Firm
    1918 S Texas Ave
    Bryan, TX 77802
    (979) 779-9999
    General Practice Attorneys, Attorneys
    Leichter Law Firm PC
    1602 E 7th St
    Austin, TX 78702
    (512) 495-9995
    Attorneys,  Criminal Law Attorneys,  Tax Attorneys,  Business Law Attorneys,  Arbitration Services,
    Vera Queta
    917 Franklin St # 240
    Houston, TX 77002
    (713) 807-9990
    Attorneys, General Practice Attorneys
    Millan Felipe
    1147 Montana Ave
    El Paso, TX 79902
    (915) 566-9977
    Immigration Law Attorneys, Attorneys, Legal Service Plans
    Hernandez Ruben P.
    1205 E Yandell Dr
    El Paso, TX 79902
    (915) 532-9971
    Attorneys, Immigration & Naturalization Consultants
    Hippard James J Jr
    1100 Leeland St Ste 250
    Houston, TX 77002
    (713) 861-9966
    Attorneys,  Civil Litigation & Trial Law Attorneys,  Personal Injury Law Attorneys,  Insurance Attor
    Emily LaChance
    400 E. Weatherford Street
    Fort Worth, TX 76102
    (817) 850-9955
    Attorneys
    Cain, Dennis - Moen Cain & O'brien
    712 Main St
    Houston, TX 77002
    (713) 222-9955
    Mon. - Fri. 9am - 5pm, Sat. - Sun. CLOSED
    Avelar & Asociados
    1419 S Green St
    Longview, TX 75602
    (903) 753-9955
    Immigration & Naturalization Consultants, Attorneys, Immigration Law Attorneys, Tax Return Preparati
    Holland George T
    100 E Ferguson St # 1007
    Tyler, TX 75702
    (903) 593-9950
    General Practice Attorneys, Attorneys, Legal Service Plans
    McGee Brandon L
    810 W 10th St
    Fort Worth, TX 76102
    (817) 877-9944
    Attorneys
    Wright Law Firm
    1626 S Washington St
    Amarillo, TX 79102
    (806) 331-9928
    General Practice Attorneys, Attorneys
    Beckham Rector & Eargle LLP
    1315 W 10th St
    Fort Worth, TX 76102
    (817) 348-9922
    Attorneys, General Practice Attorneys
    Little Douglas R
    440 Louisiana St # 1525
    Houston, TX 77002
    (713) 229-9922
    Attorneys
    Hobson Stribling & Carson LLP
    4110 Rio Bravo St
    El Paso, TX 79902
    (915) 351-9886
    Estate Planning Attorneys, Attorneys
    Warren III Harvey L
    2555 North St
    Beaumont, TX 77702
    (409) 832-9882
    Attorneys,  Tax Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Legal Service Plans
    Josh Borsellino
    1020 Macon St.
    Fort Worth, TX 76102
    (817) 908-9861
    Business Litigation Attorneys,  Civil Litigation & Trial Law Attorneys,  Labor & Employment Law Atto
    Bingham Mann House Gibson
    1415 Louisiana St Ste 3300
    Houston, TX 77002
    (713) 357-9860
    Insurance Attorneys,  Legal Service Plans,  Attorneys,  Personal Injury Law Attorneys,  Product Liab
    Kyle Morrison
    115 W Ferguson St
    Tyler, TX 75702
    (903) 253-9852
    Attorneys,  Estate Planning, Probate, & Living Trusts,  Wills, Trusts & Estate Planning Attorneys
    Rosenstein Bill D
    100 E Ferguson St # 1104
    Tyler, TX 75702
    (903) 531-9803
    Mon. - Fri. 9am - 5pm, Sat. - Sun. CLOSED
    Rosenstein Bill D
    1104 1st Pl
    Tyler, TX 75702
    (903) 531-9803
    Divorce Assistance,  Child Custody Attorneys,  Criminal Law Attorneys,  Probate Law Attorneys,  Atto
    Batten G Norman
    501 Elm St
    Dallas, TX 75202
    (214) 752-9800
    Attorneys, Legal Service Plans
    Steelman Frank
    1810 Greenfield Plz
    Bryan, TX 77802
    (979) 260-9774
    Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Business Bankruptcy Law Attorneys,  General P
    Alexander Julie A
    1700 E 2nd St
    Austin, TX 78702
    (512) 478-9770
    Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US