Find More Articles
12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents™
 
Get the Virginia Legal Documents You Need in Only Minutes!
  • Written by expert Attorneys
  • Guaranteed for your State
  • Personalized for your situation
  • Finish and print in minutes!
 Personalize My Document 

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

Benefits of a Limited Liability Company (LLC) in Wise, 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.

    •  
    Download & Print a Free VA Last Will Personalize This Document
    Page 1
    Page 2
    Page 3
    Page 4
    Page 5
    Page 6
    Page 7
    Page 8
    Page 9
    Page 10
     
    Download & Print a Free VA Living Will Personalize This Document
    Page 1
    Page 2
    Page 3
    Page 4
    Page 5
    Page 6
    Page 7
    Page 8
      Answer Easy
    Questions
    answer simple questions online step by step
    Easy Questions, Instant Documents
    • Finish in Minutes
    • Download Immediately
    • Written by Attorneys
    • 100% Guaranteed
      Get Instant Legal
        Documents™
    Print, save or email your finished legal document immediately!
    Last Will & Testament
    Related Legal Services near Wise, VA
    Sturgill Law Office
    944 Norton Rd
    Wise, VA 24293
    (276) 328-8600
    Attorneys, General Practice Attorneys, Legal Service Plans
    Baker Cox Susie
    120 Roberts Ave SW # B
    Wise, VA 24293
    (276) 328-8122
    Attorneys, Legal Service Plans
    Phipps Paul L
    5600 B S G Dr
    Wise, VA 24293
    (276) 679-7743
    Attorneys, Legal Service Plans
    Mullins Jason
    5600 B S G Dr
    Wise, VA 24293
    (276) 679-7743
    Attorneys, Legal Service Plans
    Counts Pamela A
    5600 B S G Dr
    Wise, VA 24293
    (276) 679-7743
    Attorneys, Legal Service Plans
    Lee Lewey K
    5600 B S G Dr
    Wise, VA 24293
    (276) 679-7743
    Attorneys, Legal Service Plans, General Practice Attorneys
    Kincade Law
    405 Norton Rd
    Wise, VA 24293
    (276) 321-7686
    Attorneys
    Chad Wilson PLC
    223 Main St
    Wise, VA 24293
    (276) 321-7538
    Attorneys, General Practice Attorneys, Legal Service Plans
    Bates Robert
    301 Spring St
    Wise, VA 24293
    (276) 328-6905
    Attorneys
    Rogers Leonard D PC
    PO Box 978
    Wise, VA 24293
    (276) 328-6783
    Attorneys, Commercial Law Attorneys
    Rogers Leonard D
    401 Birchfield Rd
    Wise, VA 24293
    (276) 328-6783
    Attorneys
    Morgan Jewell
    201 Main St
    Wise, VA 24293
    (276) 328-6311
    Attorneys
    Jewell Morgan
    944 Norton Rd
    Wise, VA 24293
    (276) 328-6311
    Attorneys
    Karen Bishop Law Office
    124 W Main St
    Wise, VA 24293
    (276) 328-5993
    Attorneys, General Practice Attorneys, Legal Service Plans
    Fast Daniel W
    205 Spring St
    Wise, VA 24293
    (276) 328-5555
    Attorneys
    Harris III J Thadieu
    403 Norton Rd
    Wise, VA 24293
    (276) 328-5531
    Attorneys, Legal Service Plans
    Gilliam Law Office PC
    104 Nottingham Ave
    Wise, VA 24293
    (276) 328-5526
    Attorneys, General Practice Attorneys, Legal Service Plans
    Kincade Gary Joe
    208 Main St # A
    Wise, VA 24293
    (276) 328-5286
    Attorneys, Legal Service Plans
    Fleming Brent
    706 Norton Rd
    Wise, VA 24293
    (276) 328-5188
    Attorneys, General Practice Attorneys, Legal Service Plans
    Collins R Stuart
    706 Norton Rd
    Wise, VA 24293
    (276) 328-5188
    Attorneys
    Elkins Jeff
    104 Nottingham Ave
    Wise, VA 24293
    (276) 328-4529
    Attorneys, Legal Service Plans
    Slemp Law Office, PLLC - Charles H. Slemp, III
    405 East Main Street
    Wise, VA 24293
    (276) 328-3484
    Attorneys, General Practice Attorneys, Legal Service Plans
    Roberts Joe H Atty
    106 Spring Ave SE
    Wise, VA 24293
    (276) 328-3158
    Attorneys
    Collins Mingkwan
    306 E Main St
    Wise, VA 24293
    (276) 328-2433
    Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US