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 Walnut Springs, TX

Benefits of a Limited Liability Company (LLC) in Walnut Springs, 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 Walnut Springs, TX
    Donald Johnston Law Offices
    306 N Travis St # 102
    Sherman, TX 75090
    (903) 891-9840
    Attorneys,  Probate Law Attorneys,  Legal Service Plans,  Bankruptcy Law Attorneys
    Johnston Donald
    306 N Travis St # 102
    Sherman, TX 75090
    (903) 891-9840
    Attorneys, Probate Law Attorneys, Legal Service Plans, Bankruptcy Law Attorneys
    Darring Anne B
    619 8th Ave N
    Texas City, TX 77590
    (409) 945-9700
    Attorneys, Child Support Collections, General Practice Attorneys, Legal Service Plans
    Roesler Kenneth W
    108 N Travis St
    Sherman, TX 75090
    (903) 893-9462
    Arbitration Services,  Attorneys,  Mediation Services,  Legal Service Plans
    Freels Jr J S Sandy
    114 S Crockett St
    Sherman, TX 75090
    (903) 868-9449
    Bankruptcy Law Attorneys, Business Bankruptcy Law Attorneys, Attorneys
    Hastings Law Firm
    616 Cypress Creek Pkwy # 725
    Houston, TX 77090
    (281) 465-9399
    General Practice Attorneys, Attorneys
    Don Bailey
    309 N Willow St
    Sherman, TX 75090
    (903) 892-9185
    Criminal Law Attorneys, Attorneys
    Donald LeGrand -
    2206 Palmer Hwy
    Texas City, TX 77590
    (409) 939-9137
    Attorneys, Divorce Attorneys, Probate Law Attorneys, Wills, Trusts & Estate Planning Attorneys, Real
    Zedler David
    215 1/2 N Travis St
    Sherman, TX 75090
    (903) 868-8989
    Attorneys, Legal Service Plans
    Smith Scott
    120 S Crockett St
    Sherman, TX 75090
    (903) 868-8686
    Attorneys, Legal Service Plans
    Jarvis Bob Law Firm Pc-- Office
    123 W Houston St
    Sherman, TX 75090
    (903) 892-8500
    General Practice Attorneys, Attorneys
    Watson Craig W
    805 N Travis St
    Sherman, TX 75090
    (903) 813-8500
    Estate Planning Attorneys, Attorneys, Tax Attorneys, Business Law Attorneys, Real Estate Attorneys,
    LeGrande Law Office
    2206 Palmer Hwy
    Texas City, TX 77590
    (409) 965-8500
    Attorneys
    Brown Princess D
    123 S Travis St
    Sherman, TX 75090
    (903) 893-8161
    Real Estate Attorneys, Attorneys
    Tillett Christina A
    123 S Travis St
    Sherman, TX 75090
    (903) 893-8161
    General Practice Attorneys, Attorneys
    Barnes Mike
    423 N Rusk St
    Sherman, TX 75090
    (903) 892-8104
    Bankruptcy Law Attorneys, Attorneys, Bankruptcy Services
    Estes M Todd
    1800 Teague Dr # 301
    Sherman, TX 75090
    (903) 893-7878
    Attorneys,  Wills, Trusts & Estate Planning Attorneys,  General Practice Attorneys,  Estate Plannin
    Estes Jake
    1800 Teague Dr # 301
    Sherman, TX 75090
    (903) 893-7878
    Attorneys, Wills, Trusts & Estate Planning Attorneys, General Practice Attorneys, Estate Planning At
    Shea & Shea
    105 S Travis St
    Sherman, TX 75090
    (903) 870-7771
    Attorneys, General Practice Attorneys
    Jodi Brown
    711 N Travis St
    Sherman, TX 75090
    (903) 891-6797
    Attorneys, General Practice Attorneys
    Total Attorneys - Personal Injury
    PO Box 274176
    Whitt, TX 76490
    (940) 463-5739
    Attorneys, Legal Service Plans
    Dunn Mike
    108 S Crockett St
    Sherman, TX 75090
    (903) 893-5535
    General Practice Attorneys, Attorneys
    Gregory P. Lee & Associates, L.L.P.
    16903 Red Oak Dr
    Houston, TX 77090
    (281) 820-5050
    Insurance Attorneys, Attorneys
    Linebarger Goggan At Law
    115 E Lamar St
    Sherman, TX 75090
    (903) 893-4941
    General Practice Attorneys, Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US