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 Kerrville, TX

Benefits of a Limited Liability Company (LLC) in Kerrville, 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 Kerrville, TX
    Fred Henneke Law Office
    513 Earl Garrett St
    Kerrville, TX 78028
    (830) 257-9788
    Attorneys, Family Law Attorneys, Divorce Attorneys, Business Law Attorneys, Real Estate Attorneys, E
    Phillips Jerry
    327 Earl Garrett St Ste 102
    Kerrville, TX 78028
    (830) 257-9271
    DUI & DWI Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Drug Charges Attor
    Roxana K. Orrell, PLLC
    339 W. Water Street, Suite 4
    Kerrville, TX 78028
    (830) 285-9087
    General Practice Attorneys, Social Security & Disability Law Attorneys, Attorneys, Business Law Atto
    Clack Steven L
    241 Earl Garrett St
    Kerrville, TX 78028
    (830) 792-8888
    Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
    Davis Stewart T
    236 Junction Hwy
    Kerrville, TX 78028
    (830) 257-8851
    General Practice Attorneys, Attorneys
    King Pamela Rae
    327 Earl Garrett St # 110
    Kerrville, TX 78028
    (830) 896-7877
    General Practice Attorneys, Attorneys
    Craig Wolcott, P -
    222 Sidney Baker St S
    Kerrville, TX 78028
    (830) 315-7770
    Accident & Property Damage Attorneys, Personal Injury Law Attorneys, Attorneys
    Richard Mosty
    222 Sidney Baker St S # 400
    Kerrville, TX 78028
    (830) 792-7711
    Civil Litigation & Trial Law Attorneys, Attorneys, General Practice Attorneys
    Brad McCullouch
    717 Sidney Baker
    Kerrville, TX 78028
    (830) 257-7575
    Attorneys
    Dolce Joan D
    222 Sidney Baker St S # 211
    Kerrville, TX 78028
    (830) 257-7311
    Probate Law Attorneys, Attorneys, Wills, Trusts & Estate Planning Attorneys
    Firebrand Training Ctr Inc
    1206 Jackson Rd
    Kerrville, TX 78028
    (830) 896-6545
    Attorneys Referral & Information Service
    Patterson James W
    327 Earl Garrett St # 106
    Kerrville, TX 78028
    (830) 792-5858
    Attorneys, Criminal Law Attorneys, Legal Service Plans, General Practice Attorneys
    Ellison Richard L PC
    327 Earl Garrett St Ste 106
    Kerrville, TX 78028
    (830) 792-5601
    Accident & Property Damage Attorneys,  Attorneys,  Civil Litigation & Trial Law Attorneys,  Legal Se
    Ellison Richard L
    500 Main St Ste J
    Kerrville, TX 78028
    (830) 792-5601
    DUI & DWI Attorneys,  Attorneys,  Civil Litigation & Trial Law Attorneys,  Personal Injury Law Attor
    Baldwin-Nagle Carol
    501 Earl Garrett St
    Kerrville, TX 78028
    (830) 257-5455
    Attorneys, Legal Service Plans
    Tinley Pat
    611 Sidney Baker St
    Kerrville, TX 78028
    (830) 896-5222
    Attorneys, General Practice Attorneys
    Tinley Pat
    1114 Monroe Dr
    Kerrville, TX 78028
    (830) 257-5012
    Attorneys, General Practice Attorneys
    Parmley Robert J
    222 Sidney Baker St S # 615
    Kerrville, TX 78028
    (830) 896-4900
    General Practice Attorneys, Attorneys
    Weber Robert A
    165 Box S Dr
    Kerrville, TX 78028
    (830) 257-4650
    General Practice Attorneys, Attorneys
    The Wood Law Firm, PLLC
    451 Guadalupe St., Ste. 203
    Kerrville, TX 78028
    (830) 522-4545
    Civil Litigation & Trial Law Attorneys, Attorneys, Family Law Attorneys, Appellate Practice Attorney
    Kerrville Country Real Estate
    450 Kerrville Country Dr
    Kerrville, TX 78028
    (830) 257-4346
    Real Estate Attorneys, Attorneys
    Andrews Mark T
    500 Main St # A
    Kerrville, TX 78028
    (830) 257-4111
    General Practice Attorneys, Attorneys
    Danford Harold J
    813 Barnett St
    Kerrville, TX 78028
    (830) 257-4045
    Attorneys, General Practice Attorneys, Legal Service Plans
    Schulte Stephen B
    820 Main St # 100
    Kerrville, TX 78028
    (830) 896-3811
    Civil Litigation & Trial Law Attorneys, Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US