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 Rapidan, VA

Benefits of a Limited Liability Company (LLC) in Rapidan, 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 Rapidan, VA
    Batzli Wood & Stiles PC
    3957 Westerre Pkwy,Ste 400
    Henrico, VA 23233
    (804) 545-9800
    Child Custody Attorneys, Attorneys
    Batzli Wood & Stiles PC
    3957 Westerre Pkwy
    Henrico, VA 23233
    (804) 545-9800
    Adoption Law Attorneys, Attorneys, Family Law Attorneys
    Forrest Jr William A
    2151 Cedarfield Ln
    Henrico, VA 23233
    (804) 474-8996
    Attorneys
    Unit Owners Assoc Of Elan
    4480 Market Commons Dr
    Fairfax, VA 22033
    (703) 222-8787
    General Practice Attorneys
    Shuford M G
    2302 Cedarfield Pkwy
    Henrico, VA 23233
    (804) 474-8648
    Attorneys, Legal Service Plans
    Pitrelli John F
    13135 Lee Jackson Memorial Hwy
    Fairfax, VA 22033
    (703) 803-8600
    General Practice Attorneys
    Loftin & Osborne
    111 W Grayson St
    Galax, VA 24333
    (276) 236-8531
    Automobile Accident Attorneys,  Litigation & Tort Attorneys,  Employee Benefits & Worker Compensatio
    William B Vaughan
    310 S Main St
    Galax, VA 24333
    (276) 238-8529
    Attorneys, Legal Service Plans
    Lyons & Mitchell , PC,
    7338 Carrollton Pike
    Galax, VA 24333
    (276) 601-8507
    Social Security & Disability Law Attorneys, Attorneys, Criminal Law Attorneys, Elder Law Attorneys,
    Bazaz John C
    4000 Legato Rd
    Fairfax, VA 22033
    (703) 272-8455
    General Practice Attorneys, Attorneys, Legal Service Plans
    Dietz Bernard C
    3850 Gaskins Rd Ste 120
    Henrico, VA 23233
    (804) 290-7990
    General Practice Attorneys, Attorneys, Legal Service Plans
    Schwartz Philip
    4000 Legato Rd Ste 400
    Fairfax, VA 22033
    (703) 222-7979
    Criminal Law Attorneys, Attorneys, Family Law Attorneys
    Sim Legal, P.C.
    4000 Legato Road, Suite 1100
    Fairfax, VA 22033
    (703) 896-7686
    Estate Planning, Probate, & Living Trusts, Wills, Trusts & Estate Planning Attorneys, Elder Law Atto
    Moore Rebecca
    11000 Three Chopt Rd Ste G
    Henrico, VA 23233
    (804) 747-7653
    Attorneys
    Kales & Kales, PLC
    4000 Legato Rd, Suite 1100
    Fairfax, VA 22033
    (703) 896-7580
    Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Mediation Services,  Divorce Assistance
    Wilkins Hunt, Mary Family Law Assoc
    3711 Westerre Pkwy # C
    Henrico, VA 23233
    (804) 270-7153
    Attorneys, Legal Service Plans
    Cook Deanna D
    3801 Westerre Pkwy # B
    Henrico, VA 23233
    (804) 273-6415
    Attorneys, Legal Service Plans
    Matsen & Miller, PLLC
    4000 Legato Road
    Fairfax, VA 22033
    (571) 522-6393
    Estate Planning Attorneys, Attorneys, Legal Document Assistance
    Alan K Caudell
    104 W Washington St
    Galax, VA 24333
    (276) 236-6106
    Attorneys, Civil Litigation & Trial Law Attorneys
    Honeycutt Lindsay
    310 S Main St
    Galax, VA 24333
    (276) 238-4696
    General Practice Attorneys, Attorneys, Legal Service Plans
    Shoun Bach Walinsky & Curran PC
    4000 Legato Rd Ste 400
    Fairfax, VA 22033
    (703) 222-3333
    Family Law Attorneys, Personal Property Law Attorneys, Child Support Collections, Adoption Law Attor
    Shoun Bach Walinsky & Curran PC
    4000 Legato Rd Ste 100
    Fairfax, VA 22033
    (703) 222-3333
    Family Law Attorneys,  Personal Property Law Attorneys,  Child Support Collections,  Adoption Law At
    Schmisek Ryan M Arty
    12700 Fair Lakes Cir
    Fairfax, VA 22033
    (703) 502-3333
    General Practice Attorneys
    Harrington Kelly
    3628 Autumn Chase Dr
    Henrico, VA 23233
    (804) 360-3233
    Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US