12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
 
FINANCIAL & MARITAL

Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
 

Advantages and Disadvantages of a Limited Liability Company (LLC) in Zip Code 61938

Advantages and Disadvantages of a Limited Liability Company (LLC) in Zip Code 61938


Grit is often the single-most predictor of success.
 
- Jonah Lehrer


A Limited Liability Company (LLC) is a legal business entity that combines the liability protection of a corporation, the operating flexibility of a Partnership, and the tax benefits of a sole proprietorship. Though the rules for forming an LLC vary by state, it is a popular option for many start-up businesses.

Advantages:

Limited Personal Liability and Exposure

One advantage of an LLC is the limited liability shield, which protects the personal assets of its members. Creditors, typically, cannot hold members personally responsible for the debts and liabilities of the business. Members can only be liable to the extent of their business investment.

Pass-through Taxation

Though there are an array of tax options for a Limited Liability Company; an LLC is generally treated as a "pass-through" entity. Profits and losses pass through the business to the members and are taxed at the personal level. The business itself is not taxed. Reporting is done on members' individual income tax returns. No double taxation with both the company and the owner(s) paying taxes on the earnings of the business.

Operational Flexibility & Simplicity

An LLC is much less formal than a corporation. Record keeping and administrative procedures are not as onerous. There are no quarterly and annual meetings, or tax filings. Neither is there a board of directors.

Legitimacy

Registering a company as an LLC adds credibility to a business, and can help in brand building and marketing to potential clients and suppliers. In addition, the company can enter into contracts on its own, and also acquire property.

Disadvantages:

Higher Fees

An LLC typically pays higher filing fees compared to some other business entities or sole proprietorships. Additionally, some states require annual renewal fees or franchise taxes. It is difficult for an LLC to attract additional investment because the company does not have the ability to issue stocks and bonds. Members have to finance its business activities, or take in private investors. Getting a loan can be tough, especially for small and start-up companies. The company may have to use its business, or personal, assets to guarantee business loans.

Fewer fringe benefits

Employees of an LLC who receive fringe benefits, for example, medical insurance and parking, must treat these benefits as taxable income. This is also true for employees who own more than 2% of an S-corporation. However, employees of a C-corporation do not have to report fringe benefits as taxable income.
 
Personalize & Print a Free IL 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 IL 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 Zip Code 61938
Dunst Robert
421 N 19th St
Mattoon, IL 61938
(217) 258-8900
Divorce Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Business Bankruptcy
Dotson Stanton
1617 Wabash Ave # 1
Mattoon, IL 61938
(217) 234-8891
Estate Planning Attorneys, Attorneys, Wills, Trusts & Estate Planning Attorneys
Logue Thomas J Atty
901 Charleston Ave
Mattoon, IL 61938
(217) 234-7461
General Practice Attorneys, Attorneys
Logue Thomas J
901 Charleston Ave # 1
Mattoon, IL 61938
(217) 234-7461
Attorneys, Family Law Attorneys, Real Estate Attorneys, General Practice Attorneys, Legal Service Pl
Armstrong John H
1400 Charleston Ave
Mattoon, IL 61938
(217) 234-7123
General Practice Attorneys, Attorneys, Legal Service Plans
Fuqua Karen
1617 Wabash Ave # 2
Mattoon, IL 61938
(217) 234-6600
Bankruptcy Law Attorneys, Business Bankruptcy Law Attorneys, Attorneys
Heller Harlan
1101 Broadway Ave
Mattoon, IL 61938
(217) 234-6584
Attorneys, Malpractice Law Attorneys, Accident & Property Damage Attorneys, Corporation & Partnershi
Corn Stephen L
1807 Broadway Ave
Mattoon, IL 61938
(217) 234-6481
Criminal Law Attorneys, Attorneys, Family Law Attorneys, Real Estate Attorneys, General Practice Att
Hocking R Sean
1807 Broadway Ave
Mattoon, IL 61938
(217) 234-6481
General Practice Attorneys, Attorneys
Tofaute & Spelman
517 S 7th St
Mattoon, IL 61938
(217) 258-6022
Personal Injury Law Attorneys, Attorneys
Nelson David C
1500 Broadway Ave
Mattoon, IL 61938
(217) 235-5651
General Practice Attorneys, Attorneys
Waite Ii, E Lee - Dilsaver & Nelson
1500 Broadway Ave
Mattoon, IL 61938
(217) 235-5651
Attorneys, Legal Service Plans, Accident & Property Damage Attorneys, DUI & DWI Attorneys, Corporati
Torbeck-Livesa Judy
201 N Logan St
Mattoon, IL 61938
(217) 235-3400
Attorneys, Family Law Attorneys, Legal Service Plans
Winter-Black Janett S
201 N Logan St
Mattoon, IL 61938
(217) 235-3400
Attorneys,  General Practice Attorneys,  Legal Service Plans,  Bankruptcy Law Attorneys,  Family Law
Deselms Kaye
201 N Logan St
Mattoon, IL 61938
(217) 235-3400
Attorneys, Legal Service Plans
Roytek III F James
921 Broadway Ave E
Mattoon, IL 61938
(217) 234-3132
Accident & Property Damage Attorneys,  Attorneys,  Family Law Attorneys,  Legal Service Plans
Willette, Amanda Heller Holmes & Assoc
1101 Broadway Ave
Mattoon, IL 61938
(217) 235-2700
Johnson Fred
1101 Broadway Ave
Mattoon, IL 61938
(217) 235-2700
General Practice Attorneys, Attorneys
Holmes, Brent D - Heller Holmes & Assoc
1101 Broadway Ave
Mattoon, IL 61938
(217) 235-2700
Attorneys, Family Law Attorneys, Labor & Employment Law Attorneys, Divorce Attorneys, Civil Litigati
Bovard Mark
1101 Broadway Ave
Mattoon, IL 61938
(217) 235-2700
General Practice Attorneys, Attorneys
Heller H Kent
1101 Broadway Ave
Mattoon, IL 61938
(217) 235-2700
Attorneys,  Malpractice Law Attorneys,  Accident & Property Damage Attorneys,  Corporation & Partner
Ferguson Mark E
712 Broadway Ave
Mattoon, IL 61938
(217) 235-2323
Criminal Law Attorneys, Attorneys, Family Law Attorneys
Ryan Michael D
300 Richmond Ave E
Mattoon, IL 61938
(217) 234-2000
Attorneys, General Practice Attorneys
Bennett James A
300 Richmond Ave E
Mattoon, IL 61938
(217) 234-2000
Attorneys, General Practice Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US