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 Alto, MI

Benefits of a Limited Liability Company (LLC) in Alto, MI


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 MI 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 MI 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 Alto, MI
    Collins, Wascha & McNally
    717 S Grand Traverse St
    Flint, MI 48502
    (810) 309-9904
    Accident & Property Damage Attorneys,  Personal Injury Law Attorneys,  Wrongful Death Attorneys,  At
    Walker David R PC
    43902 Woodward Ave
    Bloomfield Hills, MI 48302
    (248) 758-9900
    Attorneys,  Accident & Property Damage Attorneys,  Probate Law Attorneys,  Real Estate Attorneys,  F
    Yeo & Yeo PC CPA
    3023 Davenport
    Saginaw, MI 48602
    (989) 793-9830
    Accountants-Certified Public,  Business Management,  Financial Services,  Attorneys Referral & Infor
    O'Farrell Rod
    1609 Court St
    Saginaw, MI 48602
    (989) 792-9767
    Attorneys, General Practice Attorneys
    Bauer Creech Jill PLLC
    328 S Saginaw St
    Flint, MI 48502
    (810) 233-9747
    Family Law Attorneys,  Attorneys,  Divorce Attorneys,  Criminal Law Attorneys,  Bankruptcy Law Attor
    Blum Konheim & Ceglarek
    717 S Grand Traverse St
    Flint, MI 48502
    (810) 238-9700
    Accident & Property Damage Attorneys,  Litigation & Tort Attorneys,  Medical Malpractice Attorneys,
    Turnage Frank G
    1003 Church St
    Flint, MI 48502
    (810) 238-9621
    Real Estate Attorneys, Landlord & Tenant Attorneys, Attorneys
    Elliott James O
    43494 Woodward Ave
    Bloomfield Hills, MI 48302
    (248) 451-9600
    General Practice Attorneys, Attorneys, Legal Service Plans
    Atkin Jeffrey C
    1121 N Michigan Ave
    Saginaw, MI 48602
    (989) 752-9595
    Attorneys, Legal Service Plans
    Davidson Breen & Doud PC
    1121 N Michigan Ave
    Saginaw, MI 48602
    (989) 752-9595
    Personal Injury Law Attorneys, Attorneys, Insurance
    Della Santina Philip
    1121 N Michigan Ave
    Saginaw, MI 48602
    (989) 752-9595
    Attorneys, Legal Service Plans
    Sowah Ayiteh
    1121 N Michigan Ave
    Saginaw, MI 48602
    (989) 752-9595
    Attorneys, Legal Service Plans
    Steele Floyd
    1121 N Michigan Ave
    Saginaw, MI 48602
    (989) 752-9595
    Attorneys, Legal Service Plans
    Gibbs Gregory T
    717 S Grand Traverse St
    Flint, MI 48502
    (810) 239-9470
    Attorneys, Legal Service Plans, Criminal Law Attorneys, Labor & Employment Law Attorneys, Civil Liti
    Main Kathleen M
    1038 S Grand Traverse St
    Flint, MI 48502
    (810) 232-9460
    Collection Law Attorneys, Attorneys
    Jacobs & Engle PC Attorney's At Law
    1104 W Michigan Ave
    Jackson, MI 49202
    (517) 782-9459
    Divorce Attorneys,  Attorneys,  Criminal Law Attorneys,  Accident & Property Damage Attorneys,  Gene
    Kobrin John P Jr
    3010 Wildwood Ave
    Jackson, MI 49202
    (517) 782-9451
    Social Security & Disability Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Accident & Propert
    Mark A Chadwick PC
    43494 Woodward Ave
    Bloomfield Hills, MI 48302
    (248) 646-9440
    Attorneys
    The Legal Assistant Inc
    1000 Beach St
    Flint, MI 48502
    (810) 715-9434
    Paralegals
    Bankruptcy Docs
    653 S Saginaw St
    Flint, MI 48502
    (810) 406-9411
    Paralegals, Legal Document Assistance
    Hanba & Lazar PC
    601 S Grand Traverse St
    Flint, MI 48502
    (810) 767-9400
    Attorneys, Legal Service Plans
    CIS Investigations
    604 Fairyland Ave
    Jackson, MI 49202
    (517) 748-9379
    Criminal Law Attorneys,  Accident & Property Damage Attorneys,  Workers Compensation & Disability In
    James C Dillard
    702 Church St
    Flint, MI 48502
    (810) 230-9370
    Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Corporation & Partnership Law Attorneys,  R
    Law Office David K Sucher PC
    3910 Telegraph Rd
    Bloomfield Hills, MI 48302
    (248) 723-9340
    General Practice Attorneys, Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US