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 Mertens, TX

Benefits of a Limited Liability Company (LLC) in Mertens, 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 Mertens, TX
    Wommack Law Firm
    7 W Way Ct Ste A
    Lake Jackson, TX 77566
    (979) 297-9755
    Attorneys,  Tax Attorneys,  Banking & Mortgage Law Attorneys,  Business Law Attorneys,  Litigation &
    Yock Bradford E
    100 N Edward Gary St Ste B100
    San Marcos, TX 78666
    (512) 396-9730
    Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Business Law Attorneys,  Real Estate Attorney
    Attorney General of Texas
    631 Mill St
    San Marcos, TX 78666
    (512) 353-9701
    Attorneys, State Government
    Hagood Gene S.
    1520 E Hwy 6
    Lake Jackson, TX 77566
    (800) 632-9404
    Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
    Wenk Michael
    174 S Guadalupe St # 205
    San Marcos, TX 78666
    (512) 392-9365
    Attorneys, Criminal Law Attorneys, General Practice Attorneys, Legal Service Plans
    Ronald Dickens
    2206 Ranch Road 12 Ste E
    San Marcos, TX 78666
    (512) 392-9300
    Attorneys, Legal Service Plans
    Courtney Scot R
    144 E San Antonio St
    San Marcos, TX 78666
    (512) 392-9292
    General Practice Attorneys, Attorneys
    Polansky Law Firm PLLC The
    107 W Way St Ste 15
    Lake Jackson, TX 77566
    (979) 266-9281
    Attorneys, Family Law Attorneys, Divorce Assistance
    Lynn Peach
    322 W Hopkins St
    San Marcos, TX 78666
    (512) 757-8926
    Attorneys
    Hankins Lamar W
    1205 N State Highway 123 Ste 305
    San Marcos, TX 78666
    (512) 395-8900
    General Practice Attorneys, Attorneys
    Mark R. Davis P.C.
    130 Parking Way St
    Lake Jackson, TX 77566
    (979) 297-8860
    Attorneys, Divorce Attorneys, Family Law Attorneys
    Watts David
    174 S Guadalupe St
    San Marcos, TX 78666
    (512) 395-8538
    Attorneys
    Rasco Larry O
    136 E San Antonio St
    San Marcos, TX 78666
    (512) 396-8383
    Attorneys
    Atkins Bruce A
    12826 Willow Ctr
    Houston, TX 77066
    (832) 249-7900
    Attorneys, Legal Service Plans
    Cusack Law
    242 N Guadalupe St
    San Marcos, TX 78666
    (512) 392-7700
    Civil Litigation & Trial Law Attorneys, Attorneys
    Dobrovolny Frank
    217 S Ragsdale St
    Jacksonville, TX 75766
    (903) 586-7555
    Attorneys, Consumer Law Attorneys, County & Parish Government, General Practice Attorneys, Legal Ser
    M. J. Hill & Associates, PLLC
    174 S. Guadalupe St., Ste. 205
    San Marcos, TX 78666
    (512) 667-7505
    Child Custody Attorneys, Criminal Law Attorneys, Divorce Attorneys, Family Law Attorneys, Attorneys
    Maysel Kyle W
    108 E San Antonio St
    San Marcos, TX 78666
    (512) 396-7500
    Attorneys, Legal Service Plans
    Peacock & Peacock
    514 E Commerce St
    Jacksonville, TX 75766
    (903) 586-6800
    Attorneys, General Practice Attorneys
    Chunn Price & Harris
    19115 Fm 2252
    San Antonio, TX 78266
    (210) 308-6677
    Civil Litigation & Trial Law Attorneys, Attorneys, General Practice Attorneys
    Pastrano Chevo
    109 East Hopkins, Suite 200A
    San Marcos, TX 78666
    (512) 392-6100
    Personal Injury Law Attorneys, Criminal Law Attorneys, Attorneys, General Practice Attorneys
    Pastrano Chevo
    109 East Hopkins, Suite 200A
    San Marcos, TX 78666
    (512) 392-6100
    Personal Injury Law Attorneys, Criminal Law Attorneys, Attorneys, General Practice Attorneys
    Morris and Wise Attorneys
    165 S Guadalupe St
    San Marcos, TX 78666
    (512) 607-5647
    Personal Injury Law Attorneys, Litigation & Tort Attorneys, Attorneys
    Travis W. Berry -
    P.O. Box 6333
    Corpus Christi, TX 78466
    (361) 673-5611
    Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US