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 Reston, VA

Benefits of a Limited Liability Company (LLC) in Reston, 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 Reston, VA
    Maureen O'Malley
    11606 Hunters Green Court
    Reston, VA 20191
    (703) 483-9639
    Attorneys
    Hudock Philip F
    11874 Sunrise Valley Dr
    Reston, VA 20191
    (703) 757-9577
    Attorneys
    Robert T. Hall & Associates
    12120 Sunset Hills Rd
    Reston, VA 20190
    (703) 925-9500
    General Practice Attorneys, Attorneys, Legal Service Plans
    O'connor & Vaughn
    11490 Commerce Park Dr # 510
    Reston, VA 20191
    (703) 391-9250
    Attorneys,  Legal Service Plans,  Criminal Law Attorneys,  Family Law Attorneys,  Divorce Attorneys,
    Mcvicker Michael A
    1810 Michael Faraday Dr # 1
    Reston, VA 20190
    (703) 435-8435
    Administrative & Governmental Law Attorneys, Attorneys, Legal Service Plans
    Wees Kenneth J
    1296 Gatesmeadow Way
    Reston, VA 20194
    (703) 742-8292
    Attorneys, Legal Service Plans
    Wessel Douglas B
    1527 Autumn Ridge Cir
    Reston, VA 20194
    (703) 904-7900
    General Practice Attorneys, Legal Service Plans, Attorneys
    Sifers Michael R
    1800 Alexander Bell Dr Ste 400
    Reston, VA 20191
    (703) 234-7754
    Attorneys, Legal Service Plans
    Keating Joseph
    1800 Alexander Bell Dr # 200
    Reston, VA 20191
    (571) 313-7439
    Attorneys, Legal Service Plans
    International Launch Svc
    1875 Explorer St # 700
    Reston, VA 20190
    (571) 633-7400
    Attorneys
    Genoese-Zerbi Federico
    11951 Freedom Dr
    Reston, VA 20190
    (703) 543-7277
    Attorneys, Legal Service Plans
    The Institute for A Drugfree Workplace
    10701 Parkridge Blvd
    Reston, VA 20191
    (703) 391-7222
    Attorneys, Legal Service Plans
    Bredehoft Charlson & Pc
    11260 Roger Bacon Dr
    Reston, VA 20190
    (703) 318-6800
    Attorneys, Labor & Employment Law Attorneys, Civil Litigation & Trial Law Attorneys, Insurance Attor
    Lucas Roger J
    1902 Campus Commons Dr # 210
    Reston, VA 20191
    (703) 620-6240
    Attorneys, General Practice Attorneys, Legal Service Plans
    Cassidy & Pinkard
    1805 Library St
    Reston, VA 20190
    (703) 709-5491
    Attorneys, Legal Service Plans
    Serrano Federico
    11874 Sunrise Valley Dr # 200
    Reston, VA 20191
    (703) 379-5303
    Attorneys
    Donald J Purser
    12110 Sunset Hills Rd
    Reston, VA 20190
    (703) 715-4983
    Attorneys, General Practice Attorneys
    Bankruptcy Juan E Milanes P
    1831 Wiehle Ave Ste 105
    Reston, VA 20190
    (703) 880-4881
    Bankruptcy Law Attorneys, Business Bankruptcy Law Attorneys, Bankruptcy Services
    Lokker Law Plc
    11876 Sunrise Valley Dr Suite 201
    Reston, VA 20191
    (703) 860-4567
    Civil Litigation & Trial Law Attorneys,  Attorneys,  Business Law Attorneys,  Arbitration & Mediatio
    Horwatt & Assoc
    1714 Abercromby Ct # B
    Reston, VA 20190
    (703) 689-3800
    General Practice Attorneys, Attorneys
    The Hodges Law Firm
    1861 Wiehle Ave
    Reston, VA 20190
    (703) 480-3550
    Attorneys, General Practice Attorneys, Title Companies
    Schaefer Law Firm
    1818 Library Street, Ste 500
    Reston, VA 20190
    (703) 662-3244
    Immigration Law Attorneys
    Griggs & Adler
    12110 Sunset Hills Rd
    Reston, VA 20190
    (703) 715-3016
    Attorneys
    Hsia James C T
    11874 Sunrise Valley Dr Ste 101
    Reston, VA 20191
    (703) 749-2711
    Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US