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 Milford, VA

Benefits of a Limited Liability Company (LLC) in Milford, VA


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 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 Milford, VA
    Ditthavong & Mori
    900 Prince St
    Alexandria, VA 22314
    (703) 519-9851
    Attorneys, Legal Service Plans
    Cumberland Michelle
    1010 Pendleton St
    Alexandria, VA 22314
    (703) 299-9830
    General Practice Attorneys, Attorneys
    Kanesaka Manabu
    1700 Diagonal Rd Ste 310
    Alexandria, VA 22314
    (703) 519-9785
    Attorneys, Patent, Trademark & Copyright Law Attorneys
    Connor John B
    1033 N Fairfax St # 310
    Alexandria, VA 22314
    (703) 836-9770
    Attorneys, Legal Service Plans
    McKinney& Associates, PLLC
    1625 Prince St Suite 230
    Alexandria, VA 22314
    (703) 717-9428
    Labor & Employment Law Attorneys,  Sexual Harassment Attorneys,  Civil Litigation & Trial Law Attorn
    Powell Russell C
    901 King St # 300
    Alexandria, VA 22314
    (703) 836-9400
    Attorneys
    National District Attorneys Association
    99 Canal Center Plz
    Alexandria, VA 22314
    (703) 549-9222
    Attorneys, Legal Service Plans
    International Legal Counsel
    901 N Pitt St # 325
    Alexandria, VA 22314
    (703) 739-9111
    Attorneys, Legal Service Plans, Attorneys Referral & Information Service
    Nathan Baney Esq.
    510 King St
    Alexandria, VA 22314
    (571) 303-9102
    Divorce Attorneys, Family Law Attorneys, Attorneys
    Westreich Jonathan
    604 Cameron St
    Alexandria, VA 22314
    (703) 299-9050
    General Practice Attorneys, Attorneys, Legal Service Plans
    Wade Friedman & Sutter PC
    616 N Washington St
    Alexandria, VA 22314
    (703) 836-9030
    Accident & Property Damage Attorneys,  Attorneys,  Labor & Employment Law Attorneys,  Wills, Trusts
    Tommy Andrews Jr PC
    122 N Alfred St
    Alexandria, VA 22314
    (703) 838-9004
    Attorneys,  Immigration Law Attorneys,  Bankruptcy Services,  Bankruptcy Law Attorneys,  Administrat
    Rosenblum & Rosenblum
    228 S Washington St # 300
    Alexandria, VA 22314
    (703) 548-9002
    Personal Injury Law Attorneys,  Attorneys,  Labor & Employment Law Attorneys,  Bankruptcy Law Attorn
    Duffett III Benton S
    649 S Washington St
    Alexandria, VA 22314
    (703) 683-9000
    Attorneys, Legal Service Plans
    Grenadier Ilona E
    649 S Washington St
    Alexandria, VA 22314
    (703) 683-9000
    DUI & DWI Attorneys,  Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Personal Injury Law Att
    Grenadier, Anderson, Starace & Duffett, PC
    649 S Washington St
    Alexandria, VA 22314
    (703) 683-9000
    DUI & DWI Attorneys, Attorneys, Family Law Attorneys, Divorce Attorneys, Personal Injury Law Attorne
    Jenquine Heather N
    649 S Washington St
    Alexandria, VA 22314
    (703) 683-9000
    Attorneys, Legal Service Plans
    Robert C Dunn
    707 Prince St
    Alexandria, VA 22314
    (703) 836-9000
    General Practice Attorneys, Attorneys, Legal Service Plans
    Vadas Elaine M
    649 S Washington St
    Alexandria, VA 22314
    (703) 683-9000
    Attorneys, Legal Service Plans
    Drake Malik N
    526 King St # 207
    Alexandria, VA 22314
    (703) 518-8875
    General Practice Attorneys, Attorneys, Legal Service Plans
    Morrison John C
    200 N Fairfax St # 2
    Alexandria, VA 22314
    (703) 549-8844
    General Practice Attorneys, Attorneys, Legal Service Plans
    William J. Kovatch, Jr., PLLC
    717 King St
    Alexandria, VA 22314
    (703) 837-8832
    Attorneys, Immigration Law Attorneys, Elder Law Attorneys
    Allen Mark S
    111 Oronoco St
    Alexandria, VA 22314
    (703) 836-8787
    Attorneys, General Practice Attorneys, Legal Service Plans
    Christopher C Bouquet Law Ofc
    517 S Washington St
    Alexandria, VA 22314
    (703) 299-8780
    Attorneys, General Practice Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US