12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
 
FINANCIAL & MARITAL

Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
 

Orientation to Limited Liability Companies (LLCs) in Zip Code 20119

Orientation to Limited Liability Companies (LLCs) in Zip Code 20119


I've missed more than 9,000 shots in my career. I've lost almost 300 games. 26 times I've been trusted to take the game winning shot and missed. I've failed over and over and over again in my life and that is why I succeed.
 
- Michael Jordan


A Limited Liability Company (LLC), just like a corporation, offers protection from personal liability for business debts. But, unlike a corporation, which pays its own taxes, an LLC is a pass-through tax entity in which the profits and losses pass-through its owners who report it on their personal tax returns.

How to Form an LLC

  • File "Articles of Organization" with your state government including the name, address, and phone number of the business, and the name of the person who is the "registered agent" of the company. Depending on the state, the names of all LLC members are sometimes requested.
  • Create a written LLC operating agreement. This is a crucial document because it includes the rights and responsibilities of the LLC members. It can also include the percentage interest and the shares of profits of the members.
  • Main Features of an LLC



    Limited Personal Liability

    All LLC members are spared from personal liability for business claims and debts. A creditor cannot go after them and demand payment from their personal assets. The assets of the LLC are used to pay off debts, and the only thing members stand to lose is their investment in the business.

    Exceptions to Limited Personal Liability

    Limited personal liability can be enjoyed by an LLC when doing business transactions, but this protection is not fixed. This particular downside also applies to corporations. An LLC owner can be held liable if he/she:

  • Intentionally does something fraudulent, illegal, or reckless that causes harm to the company or to someone else.
  • Fails to pay taxes withheld from employees' wages.
  • Personally and directly injures someone.
  • Personally guarantees a bank loan or a business debt on which the LLC defaults.
  • Treats the LLC as an extension of his/her personal affairs rather than as a separate legal entity.


  • Business Protection

    Your personal assets can be protected by a good liability insurance which is not possible with a limited liability protection. If you are practicing your craft and accidentally injure someone, your liability insurance policy will cover you. In the event of a court proceeding, your insurance can protect your personal assets if the limited liability status is disregarded by the court.

    LLC Taxes

    An LLC is a "pass-through" entity where the business income passes through the business to the LLC members who will report their share of profits or losses on their individual income tax returns. All LLC members make a quarterly estimated tax payment to the IRS.

    LLC Management

    Member management means participating equally in the management of business. Manager management refers to designating one or more owners, or even outsiders, to take responsibility for managing the LLC. In a manager-managed LLC, only those named "manager" can vote with regards to management decisions and act as an agent of the LLC.


    Ending an LLC

    Depending on the laws of your state, or as indicated in the operating agreement, when one member leaves, the LLC dissolves. The remaining members will be responsible for meeting the business obligations left behind, pay the debts, and divide the remaining assets and profits among themselves. The decision to create a new LLC with the remaining members can be discussed. In order to avoid this kind of abrupt ending, your LLC operating agreement can include a "buy-sell" or "buyout" clause with guidelines on what will happen if a member decides to leave to pursue other interests, retires, or dies.

     
    Personalize & Print a Free VA 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 VA 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 Zip Code 20119
    Delaney Steven
    1021 E Cary St # 1600
    Richmond, VA 23219
    (804) 644-9816
    Attorneys, Legal Service Plans
    Kane & Papa PC
    1313 E Cary St
    Richmond, VA 23219
    (804) 225-9500
    Estate Planning Attorneys,  Attorneys,  Personal Injury Law Attorneys,  Bankruptcy Law Attorneys,  W
    Virginia Poverty Law Ctr
    700 E Main St # 1410
    Richmond, VA 23219
    (804) 782-9430
    General Practice Attorneys, Attorneys
    Hill Tucker Marsh & Jackson
    600 E Broad St
    Richmond, VA 23219
    (804) 648-9073
    General Practice Attorneys, Attorneys, Legal Service Plans
    Pickus I Scott
    422 E Franklin St
    Richmond, VA 23219
    (804) 648-9073
    Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
    Tommy Andrews Law Offices
    700 E Main St
    Richmond, VA 23219
    (804) 233-9003
    General Practice Attorneys, Attorneys
    Lawrence Lisa K
    701 E Franklin St
    Richmond, VA 23219
    (804) 767-8902
    General Practice Attorneys, Attorneys, Legal Service Plans
    Johnson Kevin E
    15 S 5th St
    Richmond, VA 23219
    (804) 788-8884
    Attorneys
    Jones R Christoph
    15 S 5th St
    Richmond, VA 23219
    (804) 440-8881
    Attorneys
    Andrews Stephan
    707 E Main St # 1700
    Richmond, VA 23219
    (804) 237-8800
    Attorneys, Legal Service Plans
    Vandeventer Black LLP
    707 E Main St
    Richmond, VA 23219
    (804) 237-8800
    Immigration Law Attorneys, Attorneys, Criminal Law Attorneys, Legal Service Plans
    Epperly and Follis PC
    7 E Franklin St
    Richmond, VA 23219
    (888) 346-8657
    Automobile Accident Attorneys
    Frank S Ferguson
    1015 E Main St Fl 2nd
    Richmond, VA 23219
    (804) 225-8641
    Attorneys, Legal Service Plans
    La Gow J C
    830 E Main St
    Richmond, VA 23219
    (804) 225-8570
    Attorneys
    Magee Kimberly M
    951 E Byrd St # 200
    Richmond, VA 23219
    (804) 788-8529
    Attorneys
    Mulcunry Andrew J
    1015 E Main St
    Richmond, VA 23219
    (804) 649-8524
    Attorneys
    Robert D Jacobs
    304 E Main St
    Richmond, VA 23219
    (804) 363-8488
    Attorneys, General Practice Attorneys, Legal Service Plans
    Davis Law
    10 E Franklin St
    Richmond, VA 23219
    (804) 308-8461
    General Practice Attorneys, Attorneys, Legal Service Plans
    Tavenner Lynn
    20 N 8th St
    Richmond, VA 23219
    (804) 783-8300
    Attorneys
    Mc Lemore James L
    7 E Franklin St
    Richmond, VA 23219
    (804) 622-8270
    Attorneys, Legal Service Plans
    Mc Connell Alan H
    951 E Byrd St # 200
    Richmond, VA 23219
    (804) 788-8200
    General Practice Attorneys
    Vandermeer Jr Abram W
    951 E Byrd St # 200
    Richmond, VA 23219
    (804) 788-8200
    General Practice Attorneys
    American Civil Liberties Union
    530 E Main St # 310
    Richmond, VA 23219
    (804) 644-8022
    Attorneys, General Practice Attorneys
    Virginia Lawyer Referral Service
    707 E Main St Ste 1500
    Richmond, VA 23219
    (800) 552-7977
    Family Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Attorneys Referral & Information Service
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US