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 Martin, PA

Benefits of a Limited Liability Company (LLC) in Martin, 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 Martin, PA
    Affordable Bankruptcy
    802 Monroe St
    Stroudsburg, PA 18360
    (570) 424-9808
    Bankruptcy Law Attorneys,  Attorneys,  Divorce Attorneys,  Estate Planning, Probate, & Living Trus
    Turano Randall Attorney
    802 Monroe St
    Stroudsburg, PA 18360
    (570) 424-9808
    Bankruptcy Law Attorneys,  Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Bankruptcy Service
    Malaska Gregory D ESQ
    802 Main St
    Stroudsburg, PA 18360
    (570) 424-9800
    General Practice Attorneys, Attorneys
    Hertz Ronald W
    43 N 7th St # 200
    Stroudsburg, PA 18360
    (570) 420-9700
    Attorneys,  Attorneys Referral & Information Service,  General Practice Attorneys,  Legal Service Pl
    Romain Robert M
    1288 Valley Forge Rd
    Phoenixville, PA 19460
    (610) 933-9444
    Arbitration Services,  Attorneys,  Mediation Services,  General Practice Attorneys,  Legal Service P
    Abrahamsen, Conaboy & Abrahamsen, P.C.
    600 Main St Ste 116
    Stroudsburg, PA 18360
    (570) 424-9320
    General Practice Attorneys, Attorneys, Legal Service Plans
    Abrahamsen Conaboy & Abrahamsen
    811 Ann St
    Stroudsburg, PA 18360
    (570) 424-9320
    Social Security & Disability Law Attorneys,  Attorneys,  Accident & Property Damage Attorneys,  Corp
    Dewitsky Jr John
    41 N 7th St
    Stroudsburg, PA 18360
    (855) 287-9266
    Attorneys,  Family Law Attorneys,  Consumer Law Attorneys,  Accident & Property Damage Attorneys,  W
    John Dewitsky Jr
    41 N 7th St
    Stroudsburg, PA 18360
    (855) 287-9266
    Attorneys,  Divorce Attorneys,  Estate Planning Attorneys,  Family Law Attorneys,  Consumer Law Atto
    Mary L Parker & Assoc
    900 Scott St
    Stroudsburg, PA 18360
    (570) 424-9100
    Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Civil Litigation & Trial Law Attorneys,  Real
    Parker, Mary Louise ESQ & Associates LLC
    804 Sarah St Ste 303
    Stroudsburg, PA 18360
    (570) 424-9100
    Attorneys,  Family Law Attorneys,  DUI & DWI Attorneys,  Civil Litigation & Trial Law Attorneys,  Ad
    Fareri James V
    712 Monroe St
    Stroudsburg, PA 18360
    (570) 421-9090
    Accident & Property Damage Attorneys,  Attorneys,  Family Law Attorneys,  Legal Service Plans
    Christman Jason Z
    712 Monroe St
    Stroudsburg, PA 18360
    (570) 421-9090
    Attorneys,  Title Companies,  Legal Service Plans,  Bankruptcy Law Attorneys
    Geiger Gerard J
    712 Monroe St
    Stroudsburg, PA 18360
    (570) 421-9090
    Attorneys,  Legal Service Plans,  Criminal Law Attorneys,  Business Law Attorneys,  Real Estate Atto
    Mishkin, Ronald J
    712 Monroe St
    Stroudsburg, PA 18360
    (570) 421-9090
    Personal Injury Law Attorneys, Insurance Attorneys, Attorneys
    Rubino Vincent
    712 Monroe St
    Stroudsburg, PA 18360
    (570) 421-9090
    Bankruptcy Law Attorneys, Attorneys, Legal Service Plans
    Williams Todd R
    712 Monroe St
    Stroudsburg, PA 18360
    (570) 421-9090
    Attorneys,  Legal Service Plans,  Family Law Attorneys,  Social Security & Disability Law Attorneys,
    Conrad Erik J
    46 N 6th St # 4
    Stroudsburg, PA 18360
    (570) 421-8890
    Child Custody Attorneys, Attorneys, Family Law Attorneys
    Stanziola Mark B
    46 N 6th St # 4
    Stroudsburg, PA 18360
    (570) 421-8890
    Child Custody Attorneys, Attorneys, Family Law Attorneys
    Mandlowitz Gerald S
    216 Bridge St
    Phoenixville, PA 19460
    (610) 933-8603
    Attorneys Referral & Information Service, Legal Service Plans, Attorneys
    Mandlowittz Gerald S
    118 Gay St
    Phoenixville, PA 19460
    (610) 933-8603
    Attorneys Referral & Information Service
    Scanlon Lewis & Williamson
    624 Sarah St
    Stroudsburg, PA 18360
    (570) 421-8550
    Wills, Trusts & Estate Planning Attorneys, Attorneys, Real Estate Attorneys, Legal Service Plans
    Drake Hileman & Davis
    1286 N 9th St
    Stroudsburg, PA 18360
    (570) 421-8119
    Attorneys,  Malpractice Law Attorneys,  General Practice Attorneys,  Legal Service Plans,  Product L
    Reish Law Office
    24 N 7th St
    Stroudsburg, PA 18360
    (570) 476-8070
    Attorneys, General Practice Attorneys, Legal Service Plans, Family Law Attorneys, Juvenile Law Attor
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US