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 Jackson, MS

Benefits of a Limited Liability Company (LLC) in Jackson, MS


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 MS 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 MS 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 Jackson, MS
    Social Security & Disability
    1553 E County Line Rd Ste 106
    Jackson, MS 39211
    (601) 914-9989
    Attorneys, Social Security & Disability Law Attorneys, Disability Services
    Chittom Michael B
    200 E Capitol St
    Jackson, MS 39201
    (601) 968-9986
    Attorneys, Legal Service Plans
    Steven D Boon Law Firm
    405 Tombigbee St
    Jackson, MS 39201
    (601) 960-9966
    General Practice Attorneys, Attorneys
    Lindsey A Boyd Law Firm P
    401 E Capitol St # 300
    Jackson, MS 39201
    (601) 960-9949
    General Practice Attorneys, Attorneys, Legal Service Plans
    Andress Scott E
    188 E Capitol St # 1400
    Jackson, MS 39201
    (601) 961-9900
    Attorneys
    Ford Tim
    188 E Capitol St # 1400
    Jackson, MS 39201
    (601) 961-9900
    Attorneys
    Martin Heather W
    401 E Capitol St # 200
    Jackson, MS 39201
    (601) 961-9900
    Attorneys
    Lee Herbert
    2311 W Capitol St
    Jackson, MS 39209
    (601) 355-9895
    Attorneys, Legal Service Plans
    Rhoden Tom
    2236 Sheffield Dr
    Jackson, MS 39211
    (601) 366-9848
    Attorneys
    Cody Gibson
    405 Tombigbee St
    Jackson, MS 39201
    (601) 948-9840
    Attorneys, Legal Service Plans
    Gunter V Douglas
    4256 Forest Park Dr
    Jackson, MS 39211
    (601) 362-9822
    Attorneys
    Mitchell Don A
    403 S State St
    Jackson, MS 39201
    (601) 354-9801
    Attorneys, Legal Service Plans
    Fulgham, William W
    1900 Lakeland Dr
    Jackson, MS 39216
    (601) 932-9710
    General Practice Attorneys, Attorneys, Legal Service Plans
    William Armstrong Jr.
    1675 Lakeland Dr Hinds
    Jackson, MS 39216
    (601) 981-9696
    Attorneys, Legal Service Plans
    Hawkins Stracener & Gibson P
    628 N State St
    Jackson, MS 39202
    (601) 969-9692
    Personal Injury Law Attorneys, Attorneys, Attorneys Referral & Information Service
    Stacener Eric
    628 N State St
    Jackson, MS 39202
    (601) 969-9692
    Attorneys
    The Estes Group Inc
    4915 I 55 N Ste 300C
    Jackson, MS 39206
    (601) 362-9633
    Attorneys, Legal Service Plans
    John R. Reeves, PC
    355 S. State Street
    Jackson, MS 39201
    (601) 355-9600
    Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Personal Injury Law Attorneys,  General Pract
    Tabor Law Firm
    308 E Pearl St
    Jackson, MS 39201
    (601) 944-9588
    Attorneys,  Personal Injury Law Attorneys,  Accident & Property Damage Attorneys,  Legal Service Pla
    Mississippi Volunteer Lawyers Project (MVLP)
    921 N President St
    Jackson, MS 39202
    (601) 960-9577
    Attorneys, Family Law Attorneys, Legal Clinics
    John M Mooney
    208 Waterford Pl
    Jackson, MS 39211
    (601) 981-9555
    Family Law Attorneys, Attorneys, Employment Discrimination Attorneys
    Firm Hearn Law
    755 Gillespie St
    Jackson, MS 39202
    (601) 321-9539
    Attorneys
    Scott, Tom B III
    5 Old River Pl
    Jackson, MS 39202
    (601) 353-9522
    General Practice Attorneys, Attorneys, Legal Service Plans
    Clayton Bridgett McDade
    401 E Capitol St
    Jackson, MS 39201
    (601) 961-9494
    Attorneys,  Family Law Attorneys,  Estate Planning, Probate, & Living Trusts,  Personal Injury Law
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US