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 Collinston, UT

Benefits of a Limited Liability Company (LLC) in Collinston, UT


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 UT 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 UT 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 Collinston, UT
    Robert J Derry & Assoc
    4252 S 700 E
    Provo, UT 84606
    (801) 494-8885
    Attorneys
    Rivers Rodney W
    90 N 100 E
    Provo, UT 84606
    (801) 373-8848
    Attorneys, Legal Service Plans
    Jeffs, David D - Jeffs & Jeffs Pc
    90 N 100 E
    Provo, UT 84606
    (801) 373-8848
    Estate Planning Attorneys,  Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Business Law Atto
    Hancock Liisa A
    90 N 100 E
    Provo, UT 84606
    (801) 373-8848
    Attorneys, Legal Service Plans
    Fowlke Lorie D Atty
    90 N 100 E
    Provo, UT 84606
    (801) 373-8848
    Attorneys
    DMV Offices Utah
    100 E Center St
    Provo, UT 84606
    (800) 368-8824
    Attorneys
    Jacques Bruce A
    3194 S 1100 E
    Salt Lake City, UT 84106
    (801) 484-8555
    Attorneys, Legal Service Plans
    Affordable Immigration Solutions
    2150 South 1300 East, 500
    Salt Lake City, UT 84106
    (801) 207-8271
    Attorneys, Immigration Law Attorneys
    Minas Rusell Y
    1945 S 1100 E # 200
    Salt Lake City, UT 84106
    (801) 531-7400
    Attorneys, General Practice Attorneys
    L S Mc Cullough Jr Attorney
    2180 S 1300 E # 600
    Salt Lake City, UT 84106
    (801) 530-7358
    Attorneys
    David Pedrazas, PLLC
    3325 South 1100 East
    Salt Lake City, UT 84106
    (801) 263-7078
    Attorneys, Divorce Attorneys, Family Law Attorneys
    Covey & Young, PLLC
    2150 South 1300 East, Suite 50
    Salt Lake City, UT 84106
    (801) 251-6869
    Open Daily 24 Hours
    Greg Smith and Associates
    2150 S 1300 E
    Salt Lake City, UT 84106
    (801) 364-6454
    DUI & DWI Attorneys,  Attorneys,  Criminal Law Attorneys,  Legal Service Plans
    Tait George
    623 E 2100 S
    Salt Lake City, UT 84106
    (801) 487-6454
    Attorneys, Legal Service Plans
    Neil Harris
    43 East 200 North
    Provo, UT 84606
    (801) 377-6431
    Family Law Attorneys,  Divorce Attorneys,  General Practice Attorneys,  Bankruptcy Law Attorneys
    Howard Lewis & Petersen PC
    120 E 300 N
    Provo, UT 84606
    (801) 373-6345
    Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Real Estate Attorneys,  Personal Injury Law A
    Howard Lewis & Petersen
    120 E 300 N
    Provo, UT 84606
    (801) 373-6345
    Sexual Harassment Attorneys, Attorneys, Criminal Law Attorneys, Juvenile Law Attorneys, Civil Litiga
    Wilson Troy
    1555 E Stratford Ave # 100
    Salt Lake City, UT 84106
    (801) 467-5800
    Attorneys
    Collins Peter C
    623 E 2100 S
    Salt Lake City, UT 84106
    (801) 746-5788
    Attorneys, Legal Service Plans
    Salt Lake City Attorney
    2150 S 1300 E
    Salt Lake City, UT 84106
    (801) 657-5697
    Bankruptcy Services,  Civil Litigation & Trial Law Attorneys,  Criminal Law Attorneys,  Attorneys
    Weekes Law
    2150 S 1300 E Ste 150
    Salt Lake City, UT 84106
    (801) 657-5605
    Bankruptcy Law Attorneys, Attorneys
    J.D.Milliner & Associates, P.C.
    1240 E 2100 S
    Salt Lake City, UT 84106
    (801) 505-5600
    Corporation & Partnership Law Attorneys,  Estate Planning Attorneys,  Probate Law Attorneys,  Wills,
    Jeffrey C. Howe Law Office
    2150 S 1300 E Suite 500
    Salt Lake City, UT 84106
    (801) 347-5579
    Attorneys
    Burton Anderso John
    320 E 3000 S
    Salt Lake City, UT 84106
    (801) 933-5050
    Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US