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 Coulee Dam, WA

Benefits of a Limited Liability Company (LLC) in Coulee Dam, 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 Coulee Dam, WA
    Jazzpirations Enterprises Inc
    3803 55th Ave SW
    Seattle, WA 98116
    (206) 817-9602
    Attorneys, Legal Service Plans
    Robert C. Hahn III, P.S.
    2312 N Cherry St Ste 100
    Spokane Valley, WA 99216
    (509) 921-9500
    Bankruptcy Law Attorneys
    Joan E Hansen Inc PS
    5203 SW Jacobsen Rd
    Seattle, WA 98116
    (206) 625-9180
    Attorneys
    Rachel Luke Law Office
    3000 60th Ave SW
    Seattle, WA 98116
    (206) 414-9138
    General Practice Attorneys, Attorneys, Legal Service Plans
    Cohen Jerome O
    4554 California Ave SW
    Seattle, WA 98116
    (206) 621-9095
    General Practice Attorneys, Attorneys, Legal Service Plans
    Hughes Marcella
    8284 28th Ct NE # A
    Lacey, WA 98516
    (360) 459-8595
    Child Custody Attorneys, Attorneys, Family Law Attorneys
    Jolley J Steve
    12340 E Valleyway Ave
    Spokane Valley, WA 99216
    (509) 928-8310
    Attorneys
    Townsends Agency
    3619 Owl Ln NE
    Olympia, WA 98516
    (360) 459-8292
    Paralegals
    Shuster Paralegal Svc Inc
    18223 E Appleway Ave
    Spokane Valley, WA 99016
    (509) 891-7393
    Paralegals
    Baldwin Keith R
    4050 SW Admiral Way # A
    Seattle, WA 98116
    (206) 624-7373
    Attorneys, Legal Service Plans
    Morse Stan
    312 E Trow Ave
    Chelan, WA 98816
    (509) 682-7239
    Attorneys, Legal Service Plans
    Schauer Law Offices
    3820 42nd Ave S.W.
    Seattle, WA 98116
    (206) 420-7112
    Attorneys,  Accident & Property Damage Attorneys,  Personal Injury Law Attorneys,  Employment Discri
    Barnecut James G
    4826 California Ave SW
    Seattle, WA 98116
    (206) 932-6778
    Attorneys, Legal Service Plans
    Atkins Michael
    3211 California Ave SW
    Seattle, WA 98116
    (206) 932-6754
    Attorneys, Legal Service Plans
    Woo Daniel D
    3328 59th Ave SW
    Seattle, WA 98116
    (206) 937-6161
    Attorneys, Legal Service Plans
    Toreson Law Office
    15812 E Indiana Ave
    Spokane Valley, WA 99216
    (855) 435-6160
    Attorneys, Civil Litigation & Trial Law Attorneys, General Practice Attorneys
    Craig Swapp & Associates
    16201 E Indiana Ave Suite 1900
    Spokane Valley, WA 99216
    (877) 580-5866
    Personal Injury Law Attorneys,  Accident & Property Damage Attorneys,  Wrongful Death Attorneys,  At
    Ron Meyers & Associates P
    8765 Tallon Ln NE
    Lacey, WA 98516
    (360) 459-5600
    Attorneys, Legal Service Plans, Wrongful Death Attorneys, Business Law Attorneys, Personal Injury La
    Meyers Ron
    8765 Tallon Ln NE
    Lacey, WA 98516
    (360) 459-5600
    Attorneys,  Legal Service Plans,  Wrongful Death Attorneys,  Business Law Attorneys,  Personal Injur
    Best Law & Escrow Attorney
    3909 California Ave SW
    Seattle, WA 98116
    (206) 937-5500
    Attorneys
    De Vrieze, Heather - Best & De Vrieze P
    3909 California Ave SW
    Seattle, WA 98116
    (206) 938-5500
    Estate Planning Attorneys, Attorneys, Legal Service Plans
    Fleck Law Firm
    4409 California Ave SW # 100
    Seattle, WA 98116
    (206) 932-5370
    Attorneys, General Practice Attorneys
    W Keith Goody
    140 Rockford Rd
    Cougar, WA 98616
    (360) 238-5211
    Attorneys, Legal Service Plans
    Weholt Aaron
    2203 41st Ave SW
    Seattle, WA 98116
    (206) 938-5111
    Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US