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 28444

Advantages and Disadvantages of a Limited Liability Company (LLC) in Zip Code 28444


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 NC 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 NC 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 28444
Oliff & Berridge PLC
201 S College St
Charlotte, NC 28244
(704) 375-9249
Patent, Trademark & Copyright Law Attorneys,  Attorneys,  Patent Agents,  Personal Property Law Att
Smith Douglas A
216 N Jackson St
Salisbury, NC 28144
(704) 633-9000
Attorneys
Carter James L Jr
131 N Main St
Salisbury, NC 28144
(704) 633-8857
Attorneys
Lee Law Offices PA
909 S Main St # 200
Salisbury, NC 28144
(704) 633-8681
Civil Litigation & Trial Law Attorneys, Attorneys, General Practice Attorneys
Inge, Robert L
112 N Main St
Salisbury, NC 28144
(704) 633-8486
Family Law Attorneys, Attorneys, Legal Service Plans
Hardy Mildred T
203 Georgetowne Dr
Elon, NC 27244
(336) 584-7300
Family Law Attorneys, Attorneys
Smith Mary Beth Atty
117 S Main St
Salisbury, NC 28144
(704) 636-7166
Attorneys, Family Law Attorneys
Kluttz Reamer Hayes Randolph Adkins & Carter LLP
129 N Main St
Salisbury, NC 28144
(704) 636-7100
Accident & Property Damage Attorneys,  Attorneys,  Criminal Law Attorneys,  Wills, Trusts & Estate
Lewis Fadely
102 N 3rd Ave
Siler City, NC 27344
(919) 200-6994
Civil Litigation & Trial Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Probate Law Attorneys,
Winslow Jeffrey W
144 N Church St
Hertford, NC 27944
(252) 426-5726
Traffic Law Attorneys, Attorneys, Legal Service Plans
Sherrill & Cameron PLLC
117 W Council St
Salisbury, NC 28144
(704) 633-5723
Criminal Law Attorneys, Attorneys, General Practice Attorneys
Overbey Jon S
214 E Innes St
Salisbury, NC 28144
(704) 637-5590
Attorneys, Criminal Law Attorneys, Estate Planning, Probate, & Living Trusts, Real Estate Attorneys,
Wallace & Graham PA
525 N Main St
Salisbury, NC 28144
(704) 633-5244
Social Security & Disability Law Attorneys,  Attorneys,  Accident & Property Damage Attorneys,  Empl
Woodson Sayers Lawther Short Parrott Walker & Abramson LLP
225 N Main St
Salisbury, NC 28144
(704) 633-5000
Real Estate Attorneys,  Attorneys,  Personal Injury Law Attorneys,  Accident & Property Damage Attor
William Trippe McKeny Atty
115B E Council St.
Salisbury, NC 28144
(704) 636-3700
General Practice Attorneys, Attorneys, Legal Service Plans
Shelby David
122 N Lee St
Salisbury, NC 28144
(704) 633-3446
Corporation & Partnership Law Attorneys, Attorneys, Social Security & Disability Law Attorneys
Ketner & Dees
121 E Kerr St
Salisbury, NC 28144
(704) 637-3434
Corporation & Partnership Law Attorneys,  Attorneys,  Wills, Trusts & Estate Planning Attorneys,  R
Koontz Earle A
225 N Main St # 304
Salisbury, NC 28144
(704) 636-2974
Social Security & Disability Law Attorneys, Attorneys
Koontz & Smith
225 Ste 304 N Main St
Salisbury, NC 28144
(704) 636-2974
Accident & Property Damage Attorneys,  Military & Veterans Law Attorneys,  Civil Litigation & Trial
Smith Peter C
225 N Main St # 304
Salisbury, NC 28144
(704) 636-2974
Employee Benefits & Worker Compensation Attorneys, Attorneys
Ryan B. Addison
315 N Main St
Salisbury, NC 28144
(704) 636-2080
Attorneys, Criminal Law Attorneys, Family Law Attorneys
Robert F McLaughlin
122 N Ellis St
Salisbury, NC 28144
(704) 633-2020
Bankruptcy Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Bankruptcy Services,  Legal Service
RACHEL S. GUNTHER P.C.
303 N. Church Street
Hertford, NC 27944
(252) 426-2006
Divorce Attorneys,  Landlord & Tenant Attorneys,  Bankruptcy Law Attorneys,  Traffic Law Attorneys,
Hudson, John T
122 N Lee St
Salisbury, NC 28144
(704) 633-1947
Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US