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 Warren, TX

Benefits of a Limited Liability Company (LLC) in Warren, 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 Warren, TX
    Texas Law Ofc-Martin A Harry
    101 W Main St
    Round Rock, TX 78664
    (512) 712-9990
    By Appointment
    Sanchez Vigil Y Leticia
    1323 Lee Ave
    Fort Worth, TX 76164
    (817) 626-9815
    Attorneys, Divorce Attorneys
    Avery McDaniel
    1205 N Main St
    Fort Worth, TX 76164
    (817) 810-9500
    General Practice Attorneys, Attorneys, Legal Service Plans
    Bovey Cary L
    2251 Double Creek Dr
    Round Rock, TX 78664
    (512) 904-9441
    General Practice Attorneys, Attorneys
    Izzo & Semler
    1104 S Mays St Ste 116
    Round Rock, TX 78664
    (512) 218-9292
    Family Law Attorneys,  Divorce Attorneys,  Personal Injury Law Attorneys,  Adoption Law Attorneys
    Izzo & Assoc Pllc
    603 S Mays St
    Round Rock, TX 78664
    (512) 218-9292
    Estate Planning Attorneys, Legal Service Plans, General Practice Attorneys, Business Law Attorneys,
    The Deck Law Firm
    107 N. Lampasas St.
    Round Rock, TX 78664
    (512) 251-8920
    Bankruptcy Law Attorneys, Tax Attorneys, Attorneys
    Sheets & Crossfield PC
    309 E Main St
    Round Rock, TX 78664
    (512) 255-8877
    General Practice Attorneys, Attorneys
    Rod Tanner
    1205 N Main St
    Fort Worth, TX 76164
    (817) 377-8833
    Attorneys, Labor & Employment Law Attorneys
    Wilkerson David B
    216 N Bryant St
    Pleasanton, TX 78064
    (830) 281-8484
    Attorneys, Legal Service Plans
    Tijerina Juan
    1301 N Houston St
    Fort Worth, TX 76164
    (817) 624-7800
    General Practice Attorneys, Attorneys, Legal Service Plans
    Mike Davis
    1717 N Interstate 35 Suite 300
    Round Rock, TX 78664
    (512) 244-7771
    Civil Litigation & Trial Law Attorneys, Attorneys, Criminal Law Attorneys
    Round Rock Bankruptcy Lawyer
    1000 Heritage Center Circle
    Round Rock, TX 78664
    (512) 827-7688
    Bankruptcy Law Attorneys,  Business Bankruptcy Law Attorneys,  Real Estate Attorneys,  Wills, Trust
    Canas & Flores
    1441 N Main St
    Fort Worth, TX 76164
    (817) 406-7574
    Divorce Attorneys,  Attorneys,  Family Law Attorneys,  General Practice Attorneys,  Personal Injury
    Gibbs Drew
    1111 N Interstate 35 # 102
    Round Rock, TX 78664
    (512) 671-7277
    Personal Injury Law Attorneys, Attorneys
    John E. Athey
    1000 Heritage Center Cir
    Round Rock, TX 78664
    (512) 900-7141
    Attorneys,  General Practice Attorneys,  Bankruptcy Services,  Legal Service Plans,  Bankruptcy Law
    Tredennick Steven B
    4028 Sable Oaks Dr
    Round Rock, TX 78664
    (512) 246-6865
    General Practice Attorneys, Legal Service Plans, Attorneys
    Joseph B Anderson Pc
    310 W Main St
    Round Rock, TX 78664
    512-201-2966
    Civil Litigation & Trial Law Attorneys,  Attorneys,  Real Estate Attorneys,  Legal Clinics,  Busines
    Walsh Ed
    405 Round Rock Ave
    Round Rock, TX 78664
    (512) 255-6665
    Attorneys, Family Law Attorneys, Divorce Assistance, Legal Service Plans
    Hensley Lynn C
    1000 Heritage Center Cir
    Round Rock, TX 78664
    (512) 388-6034
    Corporation & Partnership Law Attorneys, Attorneys, Labor & Employment Law Attorneys, Legal Service
    Legal Guidance by Carolyn Barnes PC
    112 E Main St
    Round Rock, TX 78664
    (512) 388-6000
    Malpractice Law Attorneys, Attorneys
    Dale O'Neal
    1205 N Main St
    Fort Worth, TX 76164
    (817) 877-5995
    Family Law Attorneys
    Mc Campbell Peggy
    113 N Bryant St
    Pleasanton, TX 78064
    (830) 569-5990
    Mediation Services,  Attorneys,  Arbitration Services,  General Practice Attorneys,  Legal Service P
    Tony A. Pitts
    1901 E Palm Valley Blvd
    Round Rock, TX 78664
    (512) 825-5545
    Attorneys, General Practice Attorneys, Probate Law Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US