Pros & Cons Of An LLC

When you're setting up a business at the Lake of the Ozarks, choosing the right business entity is absolutely critical. Your business entity will impact the way your company's income is taxed, the way important decisions and processes must be handled, and how its eventual sale or dissolution must be conducted. A limited liability company (commonly abbreviated as "LLC") is a particularly popular business entity with a unique set of advantages. However, it also comes with its share of potential drawbacks. This week, O'Donnell Law Center explores some of these pros and cons.

PROS
  • An LLC can have an unlimited number of members.
  • Owners of an LLC can enjoy greater flexibility than those with other business entities. Unless the operating agreement outlines specific procedures for a certain task, owners are able to structure their company in whatever way best meets their needs.
  • Members/owners are protected with "limited liability," which helps to protect them personally from the liabilities of the business.
  • LLCs are not requires to have a board of directors or hold annual meetings. This allows for less paperwork and less of the "red tape" that is commonly associated with other business types.
  • An LLC is considered a separate entity that can continue to exist even if the owners pass away.
CONS
  • Owners of an LLC are often faced with "pass-through" taxation, where each owner's personal tax return reflects the company's profits and losses.
  • Without a strict operating agreement, LLCs may experience problems down the road as a result of their more relaxed requirements.
  • Members' undistributed profits are taxable to the members.

Curious To Learn More About How An LLC May Benefit Your Business? Contact Us!

If you are considering starting your own company and are interested in learning more about how an LLC may be able to benefit your company, contact our business attorney in Camden County MO. We would be more than happy to talk with you. Stop by our Center or give us a call at 573-552-0317.
We Carry Your Burden ~ You Carry On With Life.

Disclaimer: No attorney-client relationship is created by the publication of this blog.

The choice of a lawyer is an important decision and should not be based solely on advertising.


Phone: (573) 552-0317

O'Donnell Law Center, LLC
1026 Palisades Blvd. Suite 3

Osage Beach, MO  65065
Location: Osage Beach, MO 65065, USA

Comments

Post a Comment

Popular posts from this blog

Top 5 Ways to Make Divorce Easier on your Children

Image
Divorce is a tough time for everyone involved – especially kids. It can be hard for young children to understand what is happening to their family. It can be difficult for children to process this time as their family dynamic changes. As your divorce attorney in Osage Beach, MO , our law center sees a number of children struggle as their parents get a divorce at the Lake of the Ozarks. We’re here to help parents through the divorce process but we’d also like to help offer advice on how to make this stressful time easier on your kids, as well. 1) Be Honest It’s best to be honest about your divorce with your kids. While they may not need to know all the ugly details, they deserve to know what is going on with their parents. Have an open conversation about your divorce from your spouse and let them know they can ask any questions they may have. Try to answer any questions in an honest and positive manor. 2) Encourage them to Share Feelings You should always encourage your kid...
Read more

Cremation vs Burial – What’s the Difference?

Image
Planning for end of life may come with more decisions than you first expect. Creating an estate plan near the Lake of the Ozarks can help relieve your loved ones from having to make many tough decisions upon your passing. Not only can you decide who will receive your assets, you can also plan your end of life wishes for being laid to rest. Our estate planning attorney in Camden County, Missouri wants to help inform you of some of the decisions you’ll need to make as you make your end of life plans. In this week’s blog, we’re comparing the difference between cremation and burial options for being laid to rest. All About Cremation: Cremation is the act of being incinerated until your remains become ashes. This method of body disposal is becoming more and more popular. Timeframe – cremation can take place further after death. The flexibility with time allows your family time to gather and plan a more personalized ceremony. Paying Respects – family and friends can memorialize th...
Read more

Meet Attorney Deirdre O'Donnell!

Image
Positive and genuine client relationships are our number one priority at O'Donnell Law Center. We truly care about getting to know our clients so we can provide them with the best possible legal services at the Lake of the Ozarks . We recognize that strong relationships are a two-way street, though, so this week we're dedicating our blog to helping you get to know the Lake of the Ozarks' top attorney , Ms. Deirdre O'Donnell. Getting to Know Deirdre! I was born in St. Louis, Missouri on February 22, 1962. I graduated from Pattonville High School in St. Louis County and went on to earn a BA from Washington University in St. Louis, a Master's Degree in Social Work from Washington University and a Juris Doctorate Degree from Washington University School of Law. By 1996, I was licensed to practice law in the state of Missouri. In my young adult years, I played keyboard and performed in various St. Louis venues in a contemporary jazz band. I later worked a...
Read more