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 Ashford, WA

Benefits of a Limited Liability Company (LLC) in Ashford, WA


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 WA 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 WA 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 Ashford, WA
    Dyer & Primont
    720 3rd Ave
    Seattle, WA 98104
    (206) 748-9999
    Attorneys, Legal Service Plans
    Hale Law Firm
    506 2nd Ave
    Seattle, WA 98104
    (206) 622-9972
    Attorneys
    Glogowski Katrina
    506 2nd Ave # 2600
    Seattle, WA 98104
    (206) 903-9966
    General Practice Attorneys, Attorneys
    Black & Yund
    701 5th Ave Ste 5500
    Seattle, WA 98104
    (206) 292-9953
    Estate Planning Attorneys, Attorneys, Legal Service Plans, Business Law Attorneys, Real Estate Attor
    Whitaker Bryan P
    815 W 7th Ave
    Spokane, WA 99204
    (509) 315-9947
    General Practice Attorneys, Attorneys
    Kawakami Rodney L
    671 S Jackson St # 201
    Seattle, WA 98104
    (206) 682-9932
    Attorneys
    Beaudry Law Firm
    11000 Main St
    Bellevue, WA 98004
    (425) 455-9922
    Attorneys, General Practice Attorneys, Legal Service Plans
    Mueller Steve
    119 1st Ave S # 320
    Seattle, WA 98104
    (206) 463-9912
    Attorneys
    Schwarz Andrew W
    119 1st Ave S # 320
    Seattle, WA 98104
    (206) 622-9909
    Attorneys, General Practice Attorneys, Legal Service Plans
    Joner Law Firm
    302 E Main St
    Battle Ground, WA 98604
    (360) 687-9900
    Attorneys, General Practice Attorneys, Legal Service Plans
    Cogan Peter G
    119 1st Ave S Ste 500
    Seattle, WA 98104
    (206) 382-9896
    Attorneys,  Legal Service Plans,  Criminal Law Attorneys,  Labor & Employment Law Attorneys,  Appell
    Peter G. Cogan
    119 1st Ave S Ste 500
    Seattle, WA 98104
    (206) 382-9896
    Civil Litigation & Trial Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Labor & Employment Law
    Richardson David B
    2135 112th Ave NE # 200
    Bellevue, WA 98004
    (425) 646-9801
    General Practice Attorneys, Attorneys, Legal Service Plans
    Du Beau Michael K
    2135 112th Ave NE # 200
    Bellevue, WA 98004
    (425) 455-9787
    Attorneys, Legal Service Plans
    Shucklin Philip R Ps
    2000 112th Ave NE
    Bellevue, WA 98004
    (425) 637-9755
    Attorneys,  Family Law Attorneys,  General Practice Attorneys,  Legal Service Plans,  Divorce Attorn
    Desmet Ervin
    10900 NE 8th St Ste 900
    Bellevue, WA 98004
    (425) 450-9735
    Estate Planning Attorneys,  Attorneys,  Personal Injury Law Attorneys,  Legal Service Plans
    Phillips Herron, P
    1750 112th Ave NE Suite A-208
    Bellevue, WA 98004
    (425) 629-9727
    Personal Injury Law Attorneys
    Gompf Jean L
    720 3rd Ave # 1600
    Seattle, WA 98104
    (206) 441-9723
    General Practice Attorneys, Attorneys, Legal Service Plans
    Fay Harry B
    2227 112th Ave NE # 202
    Bellevue, WA 98004
    (425) 451-9700
    General Practice Attorneys, Attorneys
    Family Law Casa
    811 1st Ave
    Seattle, WA 98104
    (206) 748-9700
    Family Law Attorneys, Attorneys, Divorce Attorneys, Legal Service Plans
    Fox Neil
    1008 Western Ave # 302
    Seattle, WA 98104
    (206) 624-9694
    Attorneys
    Iaria Michael P
    1008 Western Ave # 302
    Seattle, WA 98104
    (206) 624-9694
    General Practice Attorneys, Attorneys
    Jeffrey D Cohen Law Office
    1008 Western Ave # 302
    Seattle, WA 98104
    (206) 624-9690
    General Practice Attorneys, Attorneys, Legal Service Plans
    Steve Tanijo, PLLC
    701 5th Ave Suite 4200
    Seattle, WA 98104
    (206) 607-9664
    Divorce Attorneys, Attorneys, Family Law Attorneys, Immigration Law Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US