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 Mechanicsville, VA

Benefits of a Limited Liability Company (LLC) in Mechanicsville, VA


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 VA 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 VA 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 Mechanicsville, VA
    Muzi Carl
    9097 Atlee Station Rd Ste 218
    Mechanicsville, VA 23116
    (804) 746-9002
    Attorneys, Legal Service Plans
    Eutsler R Kern & Eva V
    7090 Covenant Woods Dr
    Mechanicsville, VA 23111
    (804) 569-8053
    Attorneys, Legal Service Plans
    Chenault Law Offices
    9235 Shady Grove Rd Ste 108
    Mechanicsville, VA 23116
    (804) 730-7175
    General Practice Attorneys, Attorneys, Legal Service Plans
    Comer Jerome E
    9097 Atlee Station Rd
    Mechanicsville, VA 23116
    (804) 427-6538
    Attorneys, General Practice Attorneys
    Coleman Goots & Assoc
    9097 Atlee Station Rd Ste 218
    Mechanicsville, VA 23116
    (804) 569-6111
    Attorneys, Legal Service Plans, Criminal Law Attorneys, Family Law Attorneys, Divorce Attorneys, Rea
    Debt Law Group A
    8090 Mechanicsville Tpke
    Mechanicsville, VA 23111
    (804) 723-5567
    Attorneys,  Bankruptcy Services,  Legal Service Plans,  Bankruptcy Law Attorneys
    Allen Allen Allen & Allen
    7255 Mechanicsville Tpke
    Mechanicsville, VA 23111
    (804) 746-4900
    Personal Injury Law Attorneys, Attorneys, Insurance Attorneys
    Roberts John F
    7459 Old Hickory Dr
    Mechanicsville, VA 23111
    (804) 746-4000
    Bankruptcy Law Attorneys,  Bankruptcy Services,  Attorneys,  Legal Service Plans,  Criminal Law Atto
    Weatherley Doug
    8052 Elm Dr # E
    Mechanicsville, VA 23111
    (804) 569-3888
    General Practice Attorneys, Attorneys, Legal Service Plans
    Earp Barbara H
    8122 Mechanicsville Tpke
    Mechanicsville, VA 23111
    (804) 746-3773
    General Practice Attorneys, Attorneys
    Cook W Rand
    8122 Mechanicsville Tpke
    Mechanicsville, VA 23111
    (804) 746-3773
    Estate Planning Attorneys, Attorneys, Legal Service Plans, Criminal Law Attorneys, Family Law Attorn
    Katzen Michael A
    7272 Hanover Green Dr
    Mechanicsville, VA 23111
    (804) 746-3296
    General Practice Attorneys, Attorneys
    Cassanos Arthur P ESQ
    5279 Mechanicsville Tpke
    Mechanicsville, VA 23111
    (804) 779-2277
    Attorneys, General Practice Attorneys
    Blanton Clay
    8293 Ellerson Green Ter
    Mechanicsville, VA 23116
    (804) 789-1674
    General Practice Attorneys, Attorneys
    Duling Law Firm
    7309 Hanover Green Drive
    Mechanicsville, VA 23111
    (804) 789-0192
    Attorneys,  Tax Attorneys,  Elder Law Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Busin
    Duling Jeffrey A
    7309 Hanover Green Drive
    Mechanicsville, VA 23111
    (804) 789-0192
    Attorneys, Tax Attorneys, Elder Law Attorneys, Wills, Trusts & Estate Planning Attorneys, Business L
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US