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 Galveston, TX

Benefits of a Limited Liability Company (LLC) in Galveston, 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 Galveston, TX
    Tim Weatherly
    1014 23rd St
    Galveston, TX 77550
    (409) 762-9868
    Attorneys, Criminal Law Attorneys
    Hindman Margaret T
    305 21st St
    Galveston, TX 77550
    (409) 770-9797
    Attorneys, Legal Service Plans
    Rekoff Jyll
    2200 Market St
    Galveston, TX 77550
    (409) 770-9704
    General Practice Attorneys, Attorneys
    Tylka Law Firm
    305 21st St Ste 140
    Galveston, TX 77550
    (877) 228-9552
    Attorneys, Accident & Property Damage Attorneys, General Practice Attorneys, Legal Service Plans
    Steinberg Law Firm PC
    1826 Sealy St
    Galveston, TX 77550
    (409) 762-9090
    Attorneys, General Practice Attorneys, Legal Service Plans
    Walker David P
    1919 Sealy St
    Galveston, TX 77550
    (409) 762-8960
    Criminal Law Attorneys, Attorneys, Legal Service Plans
    Moore & Ortiz PC
    1917 61st St
    Galveston, TX 77551
    (409) 762-7187
    Attorneys, Wills, Trusts & Estate Planning Attorneys, Business Law Attorneys, Business Bankruptcy La
    Kilgore Mediation Ctr
    305 21st Street, Suite 241
    Galveston, TX 77550
    (409) 939-6924
    Attorneys,  Mediation Services,  Marriage, Family, Child & Individual Counselors,  Arbitration Ser
    Gerson D Bloom
    1023 21st St
    Galveston, TX 77550
    (409) 763-6334
    Personal Injury Law Attorneys, Attorneys, Criminal Law Attorneys
    Stevens Mark W
    2102 Mechanic St
    Galveston, TX 77550
    (409) 765-6306
    Attorneys, Legal Service Plans
    Martin Garza & Fisher LLP
    1100 25th St
    Galveston, TX 77550
    (409) 765-5705
    Attorneys, General Practice Attorneys, Legal Service Plans
    Nelson Tad A
    1919 Sealy St
    Galveston, TX 77550
    (409) 765-5614
    Attorneys,  Criminal Law Attorneys,  Divorce Attorneys,  DUI & DWI Attorneys,  Drug Charges Attorney
    Taylor Schwab
    2423 Market St
    Galveston, TX 77550
    (409) 744-4700
    Attorneys, General Practice Attorneys, Legal Service Plans
    Hopelaw Firm P
    2026 Broadway St
    Galveston, TX 77550
    (409) 497-4574
    Attorneys, General Practice Attorneys
    Eiland A Craig
    2211 The Strand # 201
    Galveston, TX 77550
    (409) 763-3260
    Personal Injury Law Attorneys, Attorneys, General Practice Attorneys
    Greer Herz & Adams LLP
    1 Moody Plz
    Galveston, TX 77550
    (409) 797-3200
    Attorneys, General Practice Attorneys, Legal Service Plans, Litigation & Tort Attorneys
    Apffel R A
    5304 Broadway St
    Galveston, TX 77551
    (409) 762-3105
    Attorneys
    Torres & Faus
    1009 44th St
    Galveston, TX 77550
    (409) 763-2978
    Attorneys,  General Practice Attorneys,  Legal Service Plans,  Criminal Law Attorneys,  Family Law A
    Patterson, Heather B - Mc Leod Alexander Powel Apffel
    802 25th St
    Galveston, TX 77550
    (409) 763-2481
    Civil Litigation & Trial Law Attorneys, Attorneys
    Salyer David P
    802 25th St
    Galveston, TX 77550
    (409) 763-2481
    Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
    Galbraith James B
    802 25th St
    Galveston, TX 77550
    (409) 763-2481
    Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
    Bashline, J D - Mc Leod Alexander Powel Apffel
    802 25th St
    Galveston, TX 77550
    (409) 763-2481
    Personal Injury Law Attorneys, Civil Litigation & Trial Law Attorneys, Attorneys
    Bastien Robert E
    2127 Broadway St
    Galveston, TX 77550
    (409) 763-2454
    Civil Litigation & Trial Law Attorneys, Attorneys, General Practice Attorneys
    Eckel John
    2228 Mechanic St # 300
    Galveston, TX 77550
    (409) 763-2341
    Personal Injury Law Attorneys, Litigation & Tort Attorneys, Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US