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!
 
 

Benefits of a Limited Liability Company (LLC) in Parsippany, NJ

Benefits of a Limited Liability Company (LLC) in Parsippany, NJ


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 NJ 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 NJ 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 Parsippany, NJ
    Bray Miller & Bray
    100 Misty Ln
    Parsippany, NJ 07054
    (973) 739-9696
    General Practice Attorneys, Attorneys
    Finestein Russell M Attorney
    35 Waterview Blvd
    Parsippany, NJ 07054
    (973) 402-9596
    General Practice Attorneys, Attorneys
    NJ Medical Malpractice Attorneys
    35 Waterview Blvd
    Parsippany, NJ 07054
    (973) 402-9596
    Medical Malpractice Attorneys
    Schonwald George
    1259 US Highway 46 # 23
    Parsippany, NJ 07054
    (973) 257-9570
    Attorneys, Legal Service Plans
    Lee Levitt ESQ
    8 Woodhollow Rd Ste 203
    Parsippany, NJ 07054
    (973) 884-9200
    General Practice Attorneys, Attorneys, Legal Service Plans
    Rizzuto Anne M
    368 E Halsey Rd
    Parsippany, NJ 07054
    (973) 884-9120
    General Practice Attorneys, Attorneys
    Maloof Theodore E
    300 Interpace Pkwy # 170
    Parsippany, NJ 07054
    (973) 299-9090
    Attorneys, General Practice Attorneys
    James C. DeZAO, P.A.
    322 US Highway 46
    Parsippany, NJ 07054
    (973) 808-8900
    Attorneys, Personal Injury Law Attorneys, Legal Service Plans, General Practice Attorneys
    Stein & Stein Lawyers
    114 Old Bloomfield Ave
    Parsippany, NJ 07054
    (973) 882-8820
    Divorce Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Real Estate Attorney
    Vincent R Kramer ESQ Attorney
    3 Century Dr
    Parsippany, NJ 07054
    (973) 539-7777
    General Practice Attorneys, Attorneys
    Colloca Richard C
    322 US Highway 46 # 240
    Parsippany, NJ 07054
    (973) 287-7700
    General Practice Attorneys, Attorneys, Legal Service Plans
    Thomas J. Smith
    2001 Route 46 East - Suite 310
    Parsippany, NJ 07054
    (973) 541-7000
    Corporation & Partnership Law Attorneys, Tax Attorneys, Wills, Trusts & Estate Planning Attorneys
    Garibian PC
    400 Lanidex Plz
    Parsippany, NJ 07054
    (973) 413-6381
    Attorneys,  Real Estate Attorneys,  Legal Clinics,  Legal Service Plans,  Divorce Attorneys
    Lury, Richard R - Kelley Drye & Warren Llp
    200 Kimball Dr
    Parsippany, NJ 07054
    (973) 503-5900
    Banking & Mortgage Law Attorneys, Attorneys, Tax Attorneys
    Castello, Geoffrey W - Kelley Drye & Warren Llp
    200 Kimball Dr
    Parsippany, NJ 07054
    (973) 503-5900
    Attorneys, Tax Attorneys, Banking & Mortgage Law Attorneys, Real Estate Attorneys, Environment & Nat
    Edward C. Lutz LLC
    1719 Route 10 East Suite 123
    Parsippany, NJ 07054
    (973) 539-5000
    Attorneys, Personal Injury Law Attorneys, Legal Service Plans, Medical Malpractice Attorneys
    Mardin Inc
    2001 US Highway 46
    Parsippany, NJ 07054
    (973) 402-4087
    Contract Law Attorneys
    Decker & Finchler
    345 Parsippany Rd
    Parsippany, NJ 07054
    (973) 884-4030
    Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Business Law Attorneys,  Real Estate Attorney
    Young J Oh
    18 Greenbriar Rd
    Parsippany, NJ 07054
    (973) 331-3838
    Attorneys, Legal Service Plans
    Golub & Isabel
    160 Littleton Rd Ste 300
    Parsippany, NJ 07054
    (973) 968-3377
    Attorneys, Labor & Employment Law Attorneys, Business Law Attorneys, Environment & Natural Resources
    Garofalo & O'Neill PA
    60 Baldwin Rd Ste 202
    Parsippany, NJ 07054
    (973) 335-3131
    General Practice Attorneys, Attorneys, Real Estate Attorneys
    O'neill, Joseph A - Garofalo Zierak & O'neill
    60 Baldwin Rd Ste 202
    Parsippany, NJ 07054
    (973) 335-3131
    Real Estate Attorneys, Tax Attorneys, Attorneys
    John Tierney
    1259 US Highway 46 Ste 133
    Parsippany, NJ 07054
    (973) 588-3050
    Traffic Law Attorneys, Attorneys
    Murphy Joel A
    40 Baldwin Rd
    Parsippany, NJ 07054
    (973) 265-2828
    Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US