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 Austin, TX

Benefits of a Limited Liability Company (LLC) in Austin, 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 Austin, TX
    Granger & Mueller
    605 W 10th St
    Austin, TX 78701
    (512) 474-9999
    Attorneys, Criminal Law Attorneys
    Greenway John W
    400 W 15th St
    Austin, TX 78701
    (512) 452-9996
    Attorneys
    Stephen J Davis
    701 Brazos St
    Austin, TX 78701
    (512) 479-9995
    General Practice Attorneys, Attorneys, Legal Service Plans
    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,
    Murray & Associates, P.C.
    13740 N Highway 183
    Austin, TX 78750
    (512) 336-9994
    Business Law Attorneys,  Family Law Attorneys,  Estate Planning, Probate, & Living Trusts,  Bankru
    Texas Martin A Harry
    4507 N Interstate 35
    Austin, TX 78722
    (512) 712-9990
    Attorneys,  General Practice Attorneys,  Legal Service Plans,  Social Security Consultants & Represe
    Hensley Edward F
    1007 Mo Pac Cir # 201
    Austin, TX 78746
    (512) 476-9988
    Insurance Attorneys, Attorneys, Social Security & Disability Law Attorneys, Personal Injury Law Atto
    Forsythe Andrew J
    1100 West Ave
    Austin, TX 78701
    (512) 477-9959
    Attorneys, Legal Service Plans
    Williams Allan L
    1100 West Ave
    Austin, TX 78701
    (512) 477-9959
    General Practice Attorneys, Attorneys
    Stern Rebecca L
    316 W 12th St, Ste. 402
    Austin, TX 78701
    (512) 481-9950
    Attorneys,  Family Law Attorneys,  Estate Planning, Probate, & Living Trusts,  Arbitration & Media
    Nina J Fantl Law Office
    1524 S Interstate 35 Ste 315
    Austin, TX 78704
    (512) 476-9950
    Administrative & Governmental Law Attorneys, Attorneys, Immigration Law Attorneys
    Mahoney, Tim Tim Mahoney PC
    2810 S 1st St
    Austin, TX 78704
    (512) 326-9944
    Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Labor & Employment Law Attorneys,  Divor
    Dan Shelley
    305 W 13th St
    Austin, TX 78701
    (512) 478-9937
    General Practice Attorneys, Attorneys
    Mc Cullar Vaught Pc
    3200 Steck Ave Suite 300
    Austin, TX 78757
    (512) 342-9933
    Divorce Attorneys,  Attorneys,  Family Law Attorneys,  Arbitration Services,  Arbitration & Mediatio
    Spencer Jamie
    812 San Antonio St
    Austin, TX 78701
    (512) 472-9909
    Attorneys
    Jana Ortega
    818 W 10th St Austin
    Austin, TX 78701
    (512) 469-9900
    Attorneys,  Bail Bonds,  Criminal Law Attorneys,  DUI & DWI Attorneys,  Juvenile Law Attorneys
    Arnold A Garcia Law Office
    504 W 7th St # B
    Austin, TX 78701
    (512) 708-9898
    General Practice Attorneys, Attorneys, Legal Service Plans
    Ontiveros Eloisa
    809 Nueces St
    Austin, TX 78701
    (512) 322-9866
    General Practice Attorneys, Attorneys, Criminal Law Attorneys
    PrimeLending
    3720 Far West Blvd., Ste 105
    Austin, TX 78731
    (512) 795-9850
    Banking & Mortgage Law Attorneys, Mortgages
    Aleshire Bill
    700 Lavaca St # 920
    Austin, TX 78701
    (512) 457-9806
    Administrative & Governmental Law Attorneys, Attorneys, Legal Service Plans
    Ray Jason
    700 Lavaca St #920
    Austin, TX 78701
    (512) 457-9806
    Administrative & Governmental Law Attorneys, Attorneys, Legal Service Plans
    The Levine Law Firm
    221 West 6th Street, Suite 960
    Austin, TX 78701
    (512) 476-9800
    Personal Injury Law Attorneys
    Andarza Law Office
    611 S Congress Ave
    Austin, TX 78704
    (512) 322-9800
    General Practice Attorneys, Attorneys, Legal Service Plans
    English Patricia A.
    901 S Mo Pac Expy
    Austin, TX 78746
    (512) 480-9777
    Family Law Attorneys, Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US