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 Spokane, WA

Benefits of a Limited Liability Company (LLC) in Spokane, 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 Spokane, WA
    Whitaker Bryan P
    815 W 7th Ave
    Spokane, WA 99204
    (509) 315-9947
    General Practice Attorneys, Attorneys
    Shotwell David
    8406 N Palm Pl
    Spokane, WA 99208
    (509) 499-9920
    Attorneys
    Stephen Haskell Law Offices
    222 N Wall St Ste 402
    Spokane, WA 99201
    (509) 443-9909
    Attorneys, Insurance Attorneys
    World Relief Western Area
    2927 N Monroe St
    Spokane, WA 99205
    (509) 484-9901
    Bankruptcy Law Attorneys
    Benson Law Office LLC
    1312 N Monroe St
    Spokane, WA 99201
    (509) 994-9787
    Attorneys, Criminal Law Attorneys, DUI & DWI Attorneys
    Casey Law Office
    1318 W College Ave
    Spokane, WA 99201
    (509) 252-9700
    General Practice Attorneys, Attorneys
    Hoover Frank
    1402 W Broadway Ave
    Spokane, WA 99201
    (509) 323-9595
    General Practice Attorneys, Attorneys
    Gregory R Heline & Associates Law Office
    1903 N Ash St
    Spokane, WA 99205
    (509) 209-9575
    Attorneys, Social Security & Disability Law Attorneys, Accident & Property Damage Attorneys, Federal
    Wolkey Mc Kinley
    528 E Spokane Falls Blvd Ste 502
    Spokane, WA 99202
    (509) 324-9500
    Legal Service Plans, Attorneys, Labor & Employment Law Attorneys, Business Law Attorneys, Real Estat
    Dyreson Jerry T
    4407 N Division St # 714
    Spokane, WA 99207
    (509) 926-9500
    General Practice Attorneys, Attorneys
    Irvine Heath M
    6107 N Astor St
    Spokane, WA 99208
    (509) 489-9500
    Attorneys
    Nelson Jason R
    2222 N Monroe St
    Spokane, WA 99205
    (509) 328-9499
    Attorneys, General Practice Attorneys
    Repp Juliana
    4205 N Maringo Dr
    Spokane, WA 99212
    (509) 893-9479
    Attorneys
    Ecton Douglas B
    10103 N Division St # 103
    Spokane, WA 99218
    (509) 326-9345
    Attorneys, Legal Service Plans
    Northwest Justice Project
    1702 W Broadway Ave
    Spokane, WA 99201
    (509) 324-9128
    Attorneys, Legal Service Plans
    Clary Raymond F
    618 W Riverside Ave # 210
    Spokane, WA 99201
    (509) 747-9100
    General Practice Attorneys, Attorneys, Legal Service Plans
    Etter Mc Mahon Lamberson Clary
    618 W Riverside Ave Ste 2
    Spokane, WA 99201
    (509) 747-9100
    Civil Litigation & Trial Law Attorneys,  Attorneys,  Labor & Employment Law Attorneys,  Business Law
    Etter William F
    618 W Riverside Ave # 210
    Spokane, WA 99201
    (509) 747-9100
    General Practice Attorneys, Attorneys, Legal Service Plans
    Mc Mahon Michael J
    618 W Riverside Ave # 210
    Spokane, WA 99201
    (509) 747-9100
    General Practice Attorneys, Attorneys, Legal Service Plans
    Stowe Daniel E
    618 W Riverside Ave # 210
    Spokane, WA 99201
    (509) 747-9100
    General Practice Attorneys, Attorneys
    Underwood Jennifer C
    618 W Riverside Ave
    Spokane, WA 99201
    (509) 747-9100
    General Practice Attorneys, Attorneys, Legal Service Plans
    Morris & Morris Ps
    220 W Main Ave
    Spokane, WA 99201
    (509) 455-9080
    Attorneys,  Legal Service Plans,  Family Law Attorneys,  Labor & Employment Law Attorneys,  Divorce
    J. S. Bland, PLLC
    725 E 3rd Ave
    Spokane, WA 99202
    (509) 344-9078
    Bankruptcy Law Attorneys,  Estate Planning Attorneys,  General Practice Attorneys,  Wills, Trusts &
    Workland & Witherspoon P
    601 W Main Ave # 714
    Spokane, WA 99201
    (509) 455-9077
    Estate Planning Attorneys, Attorneys, Legal Service Plans, Tax Attorneys, Business Law Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US