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 El Monte, CA

Benefits of a Limited Liability Company (LLC) in El Monte, CA


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 CA 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 CA 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 El Monte, CA
    Unity Immigration Law Office
    11230 Garvey Ave # B
    El Monte, CA 91733
    (626) 575-9777
    Immigration & Naturalization Consultants, Attorneys, Immigration Law Attorneys, General Practice Att
    Aladdin Bail Bonds
    11430 Valley Blvd
    El Monte, CA 91731
    (877) 765-7888
    Bail Bonds, Criminal Law Attorneys, DUI & DWI Attorneys, Bail Bond Referral Service
    Nova Financial and Insurance Corporation
    10990 Lower Azusa Rd
    El Monte, CA 91731
    (626) 579-7769
    Paralegals, Legal Document Assistance
    Victor Moses Law Office
    9814 Garvey Ave
    El Monte, CA 91733
    (626) 279-6700
    Immigration Law Attorneys, Attorneys
    Legal Documents Management
    11100 Valley Blvd # 212
    El Monte, CA 91731
    (626) 443-5364
    Paralegals, Legal Document Assistance
    The Legal Choice
    2160 Durfee Ave
    El Monte, CA 91733
    (626) 606-5000
    Legal Document Assistance,  Consultants Referral Service,  Bankruptcy Services,  Divorce Assistance,
    OLIC International Corp
    10501 Valley Blvd
    El Monte, CA 91731
    (626) 448-4777
    Immigration Law Attorneys, Immigration & Naturalization Consultants, Attorneys
    Ayuda De Inmigracion
    11678 Ramona Blvd
    El Monte, CA 91732
    (626) 443-4740
    Immigration Law Attorneys, Immigration & Naturalization Consultants, Attorneys
    romero and associates
    3232 tyler ave
    El Monte, CA 91731
    (626) 443-4593
    Bankruptcy Law Attorneys, Attorneys
    Mancia Legal Services, LLC
    4908 Peck Road
    El Monte, CA 91732
    (888) 475-4496
    Attorneys, Family Law Attorneys, Immigration & Naturalization Consultants, Real Estate Agents, Legal
    Confidential Court Services
    11401 Valley Blvd
    El Monte, CA 91731
    (626) 444-4313
    Paralegals
    Genesis Service Inc
    12080 Valley Blvd
    El Monte, CA 91732
    (626) 350-4232
    Immigration Law Attorneys, Immigration & Naturalization Consultants, Attorneys
    Confidential Court Services
    11008 Valley Mall Unit 208
    El Monte, CA 91731
    (213) 482-4173
    Paralegals
    Lea Hayashi Law Office
    11001 Valley Mall # 202
    El Monte, CA 91731
    (626) 442-3822
    General Practice Attorneys, Attorneys, Legal Service Plans
    Choice Law Group
    2160 Durfee Ave
    El Monte, CA 91733
    (626) 408-3802
    Attorneys,  General Practice Attorneys,  Bankruptcy Services,  Legal Service Plans,  Bankruptcy Law
    Premier Law
    11001 Valley Mall # 311
    El Monte, CA 91731
    (626) 401-3600
    Attorneys,  Bankruptcy Law Attorneys,  Attorneys Referral & Information Service,  Family Law Attorne
    Abrams Martin L
    11350 Valley Blvd # 100
    El Monte, CA 91731
    (626) 443-3001
    Attorneys Referral & Information Service, Attorneys, Legal Service Plans
    Li Ming G
    11100 Valley Blvd # 216
    El Monte, CA 91731
    (626) 279-2880
    Immigration Law Attorneys, Attorneys
    Michael S Yu A Law Corporation
    9680 Flair Dr
    El Monte, CA 91731
    (626) 289-2833
    General Practice Attorneys, Attorneys, Legal Service Plans
    Community Service Center El
    3604 1/2 Monterey Ave
    El Monte, CA 91731
    (626) 279-2333
    Immigration & Naturalization Consultants, Attorneys, Immigration Law Attorneys, Social Service Organ
    AW Income Tax & Attorney Services
    4593 N. Peck Rd.
    El Monte, CA 91732
    (626) 442-1121
    Paralegals, Financial Services, Taxes-Consultants & Representatives, Insurance, Legal Document Assis
    Escobedo & Escobedo
    11401 Valley Blvd # 214
    El Monte, CA 91731
    (626) 444-0918
    General Practice Attorneys, Attorneys, Legal Service Plans
    Edward C IP & Associates APC
    4424 Santa Anita Ave Suite 201
    El Monte, CA 91731
    (626) 228-0638
    Attorneys,  Criminal Law Attorneys,  Real Estate Attorneys,  Construction Law Attorneys,  Wills, Tr
    Leon Joseph
    10507 Valley Blvd Ste 822
    El Monte, CA 91731
    (626) 618-0242
    Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US