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 Issaquah, WA

Benefits of a Limited Liability Company (LLC) in Issaquah, 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 Issaquah, WA
    Reid Timothy A
    370 E Sunset Way
    Issaquah, WA 98027
    (425) 313-9414
    General Practice Attorneys, Attorneys, Legal Service Plans
    Stulberg Gall
    4730 240th Ave SE
    Issaquah, WA 98029
    (425) 427-9086
    Attorneys
    Law Offices John Long
    300 NE Gilman Blvd Ste 100
    Issaquah, WA 98027
    (425) 677-7749
    General Practice Attorneys, Attorneys
    Bergan Gary C
    1505 NW Gilman Blvd # 1
    Issaquah, WA 98027
    (425) 392-7558
    General Practice Attorneys, Attorneys
    Leppard R Steven
    175 NE Gilman Blvd # 100
    Issaquah, WA 98027
    (425) 391-7427
    Attorneys
    O'Brien Barton Joe & Hopkins, PLLP
    175 NE Gilman Blvd
    Issaquah, WA 98027
    (425) 391-7427
    Legal Service Plans, Criminal Law Attorneys, Divorce Attorneys, General Practice Attorneys, Traffic
    Joe S Russell
    175 NE Gilman Blvd # 100
    Issaquah, WA 98027
    (425) 391-7427
    Attorneys
    Bonsib Sandy
    18327 SE 60th St
    Issaquah, WA 98027
    (425) 644-7421
    Attorneys
    Houck, William - Houck Law Firm
    4045 262nd Ave SE
    Issaquah, WA 98029
    (425) 392-7118
    Attorneys
    Adams William
    22525 SE 64th Pl
    Issaquah, WA 98027
    (425) 557-5917
    Attorneys
    Middleton Joan L
    22525 SE 64th Pl # 270
    Issaquah, WA 98027
    (425) 557-5910
    Attorneys, General Practice Attorneys
    Moberly Lynn E
    175 NE Gilman Blvd
    Issaquah, WA 98027
    (425) 313-5767
    Attorneys, Legal Service Plans
    Moberly Lynn E
    135 E Sunset Way
    Issaquah, WA 98027
    (425) 313-5767
    Attorneys
    R M Holt Inc PS
    425 Rainier Blvd N
    Issaquah, WA 98027
    (425) 392-5335
    Attorneys
    Murphy John K
    425 Rainier Blvd N
    Issaquah, WA 98027
    (425) 392-5335
    Attorneys, General Practice Attorneys
    Rm Holt
    425 Rainier Blvd N
    Issaquah, WA 98027
    (425) 392-5335
    General Practice Attorneys, Attorneys
    Dougherty Offices
    317 NW Gilman Blvd
    Issaquah, WA 98027
    (425) 427-5270
    Attorneys
    John A Long Long John A
    22525 SE 64th Pl # 262
    Issaquah, WA 98027
    (425) 557-4320
    Attorneys, Real Estate Attorneys, General Practice Attorneys, Legal Service Plans
    VJ Law Firm
    22525 SE 64th Street #249
    Issaquah, WA 98027
    (425) 557-4305
    Landlord & Tenant Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Small Business Attorneys,
    Hammerly Mary
    22525 SE 64th Pl # 118
    Issaquah, WA 98027
    (425) 557-3697
    General Practice Attorneys, Attorneys, Legal Service Plans
    Strand Peter P
    22525 SE 64th Pl # 225
    Issaquah, WA 98027
    (425) 557-3647
    Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
    Precept Law Group
    700 NW Gilman Blvd
    Issaquah, WA 98027
    (425) 956-3494
    Attorneys
    Cascadia Paralegal Svc
    22525 SE 64th Pl
    Issaquah, WA 98027
    (206) 795-2924
    Paralegals
    Wanda Reif Nuxoll Ps
    22525 SE 64th Pl Suite 245
    Issaquah, WA 98027
    (206) 749-2850
    Attorneys,  Business Law Attorneys,  Real Estate Attorneys,  Bankruptcy Services,  Bankruptcy Law At
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US