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 54128

Advantages and Disadvantages of a Limited Liability Company (LLC) in Zip Code 54128


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 WI 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 WI 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 54128
Total Attorneys - Criminal Defense
PO Box 273717
Doylestown, WI 53928
(920) 460-9177
Attorneys, Criminal Law Attorneys, Legal Service Plans
Shultis Gary D
10777 W Beloit Rd
Milwaukee, WI 53228
(414) 321-6530
Attorneys, Legal Service Plans
Kershek Law Offices
10777 W Beloit Rd
Milwaukee, WI 53228
(414) 321-6530
Franchise Law Attorneys,  Attorneys,  Divorce Attorneys,  Accident & Property Damage Attorneys,  Wil
Jaskolski & Jaskolski SC
3573 S 108th St
Milwaukee, WI 53228
(414) 321-6111
Divorce Attorneys,  Attorneys,  Family Law Attorneys,  Personal Injury Law Attorneys
Laux Sarah
8585 W Forest Home Ave # 225
Milwaukee, WI 53228
(414) 427-5260
Attorneys
Wiechmann Steven
3573 S 108th St
Milwaukee, WI 53228
(414) 329-5026
Criminal Law Attorneys, Attorneys, Legal Service Plans
Wiechmann Steven
3573 S 108th St
Milwaukee, WI 53228
(414) 329-5026
Attorneys, Criminal Law Attorneys, Legal Service Plans
Jost Law Office
110 Moore St
Chetek, WI 54728
(715) 924-4821
Attorneys, General Practice Attorneys, Legal Service Plans
Wieckowicz Amanda
325 Knapp St
Chetek, WI 54728
(715) 924-4801
Attorneys, Probate Law Attorneys, Accident & Property Damage Attorneys, Wills, Trusts & Estate Plann
Meyers Michael T
3573 S 108th St
Milwaukee, WI 53228
(414) 543-4000
Attorneys, Legal Service Plans
Schmitt James L
1314 Main St
Cross Plains, WI 53528
(608) 798-3171
General Practice Attorneys, Attorneys, Legal Service Plans
Thuermer Richard J
322 S Main St
Mishicot, WI 54228
(920) 755-2713
Attorneys, General Practice Attorneys, Legal Service Plans
Erspamer Law Office
118 Douglas St
Chetek, WI 54728
(715) 924-2700
Employee Benefits & Worker Compensation Attorneys,  Attorneys,  Corporation & Partnership Law Attorn
Total Attorneys - DUI
PO Box 274001
Doylestown, WI 53928
(920) 358-0906
Attorneys, Legal Service Plans
Mehta Pamela A
3573 S 108th St
Milwaukee, WI 53228
(414) 431-0182
Attorneys, Family Law Attorneys
Gehring Mark A
3500 S 92nd St
Milwaukee, WI 53228
(414) 329-0000
Attorneys, Legal Service Plans
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US