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 Butler, PA

Benefits of a Limited Liability Company (LLC) in Butler, PA


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 PA 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 PA 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 Butler, PA
    Lutz & Pawk
    101 E Diamond St
    Butler, PA 16001
    (866) 469-9612
    Accident & Property Damage Attorneys,  Attorneys,  Criminal Law Attorneys,  Malpractice Law Attorney
    Pennsylvania Accident Attorneys Joyce & Bittner
    21 Sunnyview Circle
    Butler, PA 16001
    (866) 471-9566
    Accident & Property Damage Attorneys, Personal Injury Law Attorneys
    Misko Stephen M
    106 S Main St # 801
    Butler, PA 16001
    (724) 284-9400
    Criminal Law Attorneys, Attorneys, Legal Service Plans
    Atwell George C
    421 N Main St
    Butler, PA 16001
    (724) 283-9333
    Attorneys Referral & Information Service, Attorneys
    Luxenberg Garbett Kelly & George PC
    218 S Washington St
    Butler, PA 16001
    (866) 950-9325
    Attorneys,  Malpractice Law Attorneys,  Social Security & Disability Law Attorneys,  Civil Litigatio
    Mazzei Jason
    110 E Diamond St # 205
    Butler, PA 16001
    (724) 282-9126
    Bankruptcy Law Attorneys, Attorneys, Legal Service Plans
    Sloan & Assoc PC
    106 S Main St # 801
    Butler, PA 16001
    (724) 284-9092
    Attorneys, Environment & Natural Resources Law Attorneys
    Erie Law Offices, P.C.
    316 W Jefferson St
    Butler, PA 16001
    (724) 282-8727
    General Practice Attorneys, Social Security & Disability Law Attorneys, Attorneys
    W L Rodgers Associates
    106 S Main St
    Butler, PA 16001
    (877) 410-8459
    Attorneys, Civil Litigation & Trial Law Attorneys
    Steffish & Lafferty, PC
    121 N Washington St
    Butler, PA 16001
    (724) 291-8265
    Social Security & Disability Law Attorneys,  Attorneys,  Social Security Services,  Legal Clinics,  
    Dillon McCandless King Coulter & Graham LLP
    128 W Cunningham St
    Butler, PA 16001
    (855) 758-7783
    Accident & Property Damage Attorneys,  Attorneys,  Civil Litigation & Trial Law Attorneys,  Personal
    Beuth Dirk
    1924 N Main Street Ext # C
    Butler, PA 16001
    (724) 282-7771
    General Practice Attorneys, Attorneys
    Ferry Warren
    127 S McKean St
    Butler, PA 16001
    (724) 283-7508
    Accident & Property Damage Attorneys, Attorneys, Wills, Trusts & Estate Planning Attorneys
    Suess J Stevenson P C
    318 W Cunningham St
    Butler, PA 16001
    (888) 407-7381
    Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Probate Law Attorney
    Total Attorneys - Divorce
    PO Box 273864
    Butler, PA 16003
    (724) 382-7339
    Attorneys, Divorce Attorneys, Family Law Attorneys
    Rishor Simone
    101 E Diamond St Ste 208
    Butler, PA 16001
    (724) 283-7215
    Bankruptcy Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Legal Service Plans,  Bankruptcy Ser
    Murrin Taylor Flach Gallagher & May
    110 E Diamond St
    Butler, PA 16001
    (888) 538-7050
    Bankruptcy Law Attorneys, Probate Law Attorneys, Attorneys
    Gerald Lee Cassady
    101 E Diamond St Suite 102
    Butler, PA 16001
    (724) 272-6863
    Criminal Law Attorneys, Business Law Attorneys, Civil Litigation & Trial Law Attorneys, Attorneys, A
    Casey Patrick M
    101 E Diamond St # 221
    Butler, PA 16001
    (724) 431-6700
    Social Security & Disability Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Accident & Propert
    Lindsay Law Firm
    128 S Main St
    Butler, PA 16001
    (724) 282-6600
    Criminal Law Attorneys, General Practice Attorneys, Attorneys
    Lindsay Law Firm
    110 E Diamond St
    Butler, PA 16001
    (724) 282-6600
    Criminal Law Attorneys,  Drug Charges Attorneys,  Attorneys,  Federal Law Attorneys,  Sex Offense At
    Rosenblum Dai
    254 New Castle Rd
    Butler, PA 16001
    (888) 537-6216
    Business Bankruptcy Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Tax Attorneys,  Bankruptcy
    Cingolani & Cingolani
    104 E Diamond St
    Butler, PA 16001
    (888) 296-5901
    Sexual Harassment Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Juvenile L
    Hawk Robert F
    122 Thornwood Dr
    Butler, PA 16001
    (724) 287-5343
    General Practice Attorneys, Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US