Find More Articles
12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents™

Benefits of a Limited Liability Company (LLC) in Kieler, WI

Benefits of a Limited Liability Company (LLC) in Kieler, WI


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.

    •   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 Kieler, WI
    Mark Hersh Law Office Sc
    4425 N Port Washington Rd Ste 110
    Milwaukee, WI 53212
    (414) 332-9400
    General Practice Attorneys, Attorneys
    Rinehart Scaffidi & Mathews
    4701 N Port Washington Rd Ste 3
    Milwaukee, WI 53212
    (414) 963-9303
    Attorneys, Legal Service Plans
    Mathews Kevin
    4701 N Port Washington Rd Ste 3
    Milwaukee, WI 53212
    (414) 963-9303
    Attorneys
    Cusick David Atty
    44 S 4th St
    Barron, WI 54812
    (715) 537-9272
    Attorneys, Probate Law Attorneys, Legal Service Plans
    Steinmetz William R
    324 W Vine St
    Milwaukee, WI 53212
    (414) 271-8535
    Criminal Law Attorneys, Attorneys, Legal Service Plans
    Rash Debra L
    1819 N Dr Martin Luther King Dr Martin Luther King
    Milwaukee, WI 53212
    (414) 562-8442
    Attorneys
    Brittain Eric
    250 East Wisconsin, Suite 1800
    Milwaukee, WI 53212
    (414) 530-8235
    Attorneys, Criminal Law Attorneys, Legal Clinics, Legal Service Plans
    Liden & Dobberfuhl Sc
    425 E La Salle Ave Ste A
    Barron, WI 54812
    (715) 537-5636
    Wills, Trusts & Estate Planning Attorneys,  Attorneys,  Family Law Attorneys,  Real Estate Attorney
    Gerdisch Matthew P
    4650 N Port Washington Rd Ste 6
    Milwaukee, WI 53212
    (414) 962-5110
    Attorneys, Legal Service Plans
    Soldon Scott D
    1555 N Rivercenter Dr # 202
    Milwaukee, WI 53212
    (414) 271-4500
    Attorneys
    Robbins Matthew R
    1555 N Rivercenter Dr # 202
    Milwaukee, WI 53212
    (414) 271-4500
    Attorneys
    Ahrens Christopher
    1555 N Rivercenter Dr # 202
    Milwaukee, WI 53212
    (414) 271-4500
    Attorneys
    Locante Frank G
    1555 N Rivercenter Dr # 202
    Milwaukee, WI 53212
    (414) 271-4500
    Attorneys
    Hoeschen Andrea F
    1555 N Rivercenter Dr # 202
    Milwaukee, WI 53212
    (414) 271-4500
    Attorneys
    Ho Yingtao
    1555 N Rivercenter Dr # 202
    Milwaukee, WI 53212
    (414) 271-4500
    Attorneys
    Hartley Jill M
    1555 N Rivercenter Dr # 202
    Milwaukee, WI 53212
    (414) 271-4500
    Attorneys
    Goodrich Kathleen F
    1555 N Rivercenter Dr # 202
    Milwaukee, WI 53212
    (414) 271-4500
    General Practice Attorneys, Attorneys, Legal Service Plans
    Flanagan Thomas J Attorney
    1555 N Rivercenter Dr
    Milwaukee, WI 53212
    (414) 271-4500
    Attorneys
    The Shellow Group
    324 W Vine St
    Milwaukee, WI 53212
    (414) 263-4488
    Attorneys, Criminal Law Attorneys
    Donner & Reckmeyer
    4669 N Port Washington Rd
    Milwaukee, WI 53212
    (414) 272-4470
    Attorneys
    Laarman Linda M
    9070 Spring Rd
    Fish Creek, WI 54212
    (920) 868-4130
    Attorneys
    Berg Mark F Shop
    1446 15 3/8 St
    Barron, WI 54812
    (715) 537-3579
    Attorneys
    Mishlove and Stuckert
    4425 N Port Washington Rd #110
    Milwaukee, WI 53212
    (414) 332-3499
    Criminal Law Attorneys, DUI & DWI Attorneys, Attorneys
    Kostner Koslo & Brovold Attys
    108 W Main St
    Arcadia, WI 54612
    (608) 323-3351
    Attorneys, General Practice Attorneys, Tax Return Preparation
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US