{"id":5165,"date":"2023-01-24T12:58:57","date_gmt":"2023-01-24T12:58:57","guid":{"rendered":"https:\/\/cloud03.titletapsites.com\/testblog\/?p=5165"},"modified":"2023-02-01T08:45:04","modified_gmt":"2023-02-01T08:45:04","slug":"disadvantages-of-llc","status":"publish","type":"post","link":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/2023\/01\/24\/disadvantages-of-llc\/","title":{"rendered":"What Are The Disadvantages of an LLC?"},"content":{"rendered":"<p>With the popularity of LLCs as a business entity, growing from 17,000 in 1993 to over 2.5 million in 2015, you might think there were no disadvantages. However, there are a few to consider when choosing a business entity for your company.<\/p>\n<h2>Changes In Ownership<\/h2>\n<p>In some states, if an owner exits the LLC, either by choice or due to due death, the state will require that the LLC be dissolved, and a new entity be created and filed. This is not the case everywhere, so make sure you understand the laws and regulations of the state in which you filed (or intend to file) your LLC.<\/p>\n<h2>Liability May Not Be Ironclad<\/h2>\n<p>As a new business entity, the strength of the \u201ccorporate veil\u201d is still being tested in courts. The protections can weaken if owners have not established or do not follow an Operating Agreement. If the court determines that the LLC is operating as a sole proprietorship, the liability protections may not hold, leaving the owner\u2019s assets at risk.<\/p>\n<h2>Cost to Incorporate<\/h2>\n<p>The investment to file an LLC varies from state to state. While generally considered an affordable option compared to a C-corporation, for some small business owners, the cost may be a hurdle. According to a <a href=\"https:\/\/www.forbes.com\/advisor\/business\/what-is-an-llc\/\" target=\"_blank\" rel=\"noopener\">2022 Forbes article,<\/a> the cost can run from $10 and $800 or more to file annual reports and pay annual fees.<\/p>\n<p>According to Inc.com, because the LLC is a relatively new entity type, the laws governing LLCs are still emerging from court cases, and each state has its own LLC statutes. Fresh court decisions and nuance between states can make the legal interpretations of do\u2019s and don\u2019t\u2019s with LLCs complicated. That\u2019s why it\u2019s worth it to consult with knowledgeable and up-to-date legal and tax advisors.<\/p>\n<p><strong><a href=\".\/what-is-a-legal-agreement\/\">Browse more business law articles<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With the popularity of LLCs as a business entity, growing from 17,000 in 1993 to over 2.5 million in 2015, you might think there were no disadvantages. However, there are a few to consider when choosing a business entity for your company. Changes In Ownership In some states, if an owner exits the LLC, either [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":5167,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[1],"tags":[26,27,28,29,30,31],"class_list":["post-5165","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-business-law","tag-corporation","tag-legal-agreement","tag-llc","tag-llp","tag-negotiation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Are The Disadvantages of an LLC? - Example Law Firm<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cloud03.titletapsites.com\/tabs3-d\/2023\/01\/24\/disadvantages-of-llc\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Are The Disadvantages of an LLC? - Example Law Firm\" \/>\n<meta property=\"og:description\" content=\"With the popularity of LLCs as a business entity, growing from 17,000 in 1993 to over 2.5 million in 2015, you might think there were no disadvantages. However, there are a few to consider when choosing a business entity for your company. Changes In Ownership In some states, if an owner exits the LLC, either [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cloud03.titletapsites.com\/tabs3-d\/2023\/01\/24\/disadvantages-of-llc\/\" \/>\n<meta property=\"og:site_name\" content=\"Example Law Firm\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-24T12:58:57+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-02-01T08:45:04+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cloud03.titletapsites.com\/tabs3-d\/wp-content\/uploads\/sites\/278\/2023\/01\/Business-Law-Blog-Header-8.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1080\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"designonetest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"designonetest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/cloud03.titletapsites.com\/tabs3-d\/2023\/01\/24\/disadvantages-of-llc\/\",\"url\":\"https:\/\/cloud03.titletapsites.com\/tabs3-d\/2023\/01\/24\/disadvantages-of-llc\/\",\"name\":\"What Are The Disadvantages of an LLC? - Example Law Firm\",\"isPartOf\":{\"@id\":\"https:\/\/cloud03.titletapsites.com\/tabs3-d\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/cloud03.titletapsites.com\/tabs3-d\/2023\/01\/24\/disadvantages-of-llc\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/cloud03.titletapsites.com\/tabs3-d\/2023\/01\/24\/disadvantages-of-llc\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/cloud03.titletapsites.com\/tabs3-d\/wp-content\/uploads\/sites\/278\/2023\/01\/Business-Law-Blog-Header-8.jpeg\",\"datePublished\":\"2023-01-24T12:58:57+00:00\",\"dateModified\":\"2023-02-01T08:45:04+00:00\",\"author\":{\"@id\":\"https:\/\/cloud03.titletapsites.com\/tabs3-d\/#\/schema\/person\/188d2422a3caa12bb427cee75038b398\"},\"breadcrumb\":{\"@id\":\"https:\/\/cloud03.titletapsites.com\/tabs3-d\/2023\/01\/24\/disadvantages-of-llc\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/cloud03.titletapsites.com\/tabs3-d\/2023\/01\/24\/disadvantages-of-llc\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/cloud03.titletapsites.com\/tabs3-d\/2023\/01\/24\/disadvantages-of-llc\/#primaryimage\",\"url\":\"https:\/\/cloud03.titletapsites.com\/tabs3-d\/wp-content\/uploads\/sites\/278\/2023\/01\/Business-Law-Blog-Header-8.jpeg\",\"contentUrl\":\"https:\/\/cloud03.titletapsites.com\/tabs3-d\/wp-content\/uploads\/sites\/278\/2023\/01\/Business-Law-Blog-Header-8.jpeg\",\"width\":1080,\"height\":675},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/cloud03.titletapsites.com\/tabs3-d\/2023\/01\/24\/disadvantages-of-llc\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/cloud03.titletapsites.com\/tabs3-d\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"What Are The Disadvantages of an LLC?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/cloud03.titletapsites.com\/tabs3-d\/#website\",\"url\":\"https:\/\/cloud03.titletapsites.com\/tabs3-d\/\",\"name\":\"Example Law Firm\",\"description\":\"Law Site D\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/cloud03.titletapsites.com\/tabs3-d\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/cloud03.titletapsites.com\/tabs3-d\/#\/schema\/person\/188d2422a3caa12bb427cee75038b398\",\"name\":\"designonetest\",\"url\":\"https:\/\/cloud03.titletapsites.com\/tabs3-d\/author\/designonetest\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"What Are The Disadvantages of an LLC? - Example Law Firm","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/2023\/01\/24\/disadvantages-of-llc\/","og_locale":"en_US","og_type":"article","og_title":"What Are The Disadvantages of an LLC? - Example Law Firm","og_description":"With the popularity of LLCs as a business entity, growing from 17,000 in 1993 to over 2.5 million in 2015, you might think there were no disadvantages. However, there are a few to consider when choosing a business entity for your company. Changes In Ownership In some states, if an owner exits the LLC, either [&hellip;]","og_url":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/2023\/01\/24\/disadvantages-of-llc\/","og_site_name":"Example Law Firm","article_published_time":"2023-01-24T12:58:57+00:00","article_modified_time":"2023-02-01T08:45:04+00:00","og_image":[{"width":1080,"height":675,"url":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/wp-content\/uploads\/sites\/278\/2023\/01\/Business-Law-Blog-Header-8.jpeg","type":"image\/jpeg"}],"author":"designonetest","twitter_card":"summary_large_image","twitter_misc":{"Written by":"designonetest","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/2023\/01\/24\/disadvantages-of-llc\/","url":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/2023\/01\/24\/disadvantages-of-llc\/","name":"What Are The Disadvantages of an LLC? - Example Law Firm","isPartOf":{"@id":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/#website"},"primaryImageOfPage":{"@id":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/2023\/01\/24\/disadvantages-of-llc\/#primaryimage"},"image":{"@id":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/2023\/01\/24\/disadvantages-of-llc\/#primaryimage"},"thumbnailUrl":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/wp-content\/uploads\/sites\/278\/2023\/01\/Business-Law-Blog-Header-8.jpeg","datePublished":"2023-01-24T12:58:57+00:00","dateModified":"2023-02-01T08:45:04+00:00","author":{"@id":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/#\/schema\/person\/188d2422a3caa12bb427cee75038b398"},"breadcrumb":{"@id":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/2023\/01\/24\/disadvantages-of-llc\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/cloud03.titletapsites.com\/tabs3-d\/2023\/01\/24\/disadvantages-of-llc\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/2023\/01\/24\/disadvantages-of-llc\/#primaryimage","url":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/wp-content\/uploads\/sites\/278\/2023\/01\/Business-Law-Blog-Header-8.jpeg","contentUrl":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/wp-content\/uploads\/sites\/278\/2023\/01\/Business-Law-Blog-Header-8.jpeg","width":1080,"height":675},{"@type":"BreadcrumbList","@id":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/2023\/01\/24\/disadvantages-of-llc\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/"},{"@type":"ListItem","position":2,"name":"What Are The Disadvantages of an LLC?"}]},{"@type":"WebSite","@id":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/#website","url":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/","name":"Example Law Firm","description":"Law Site D","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/#\/schema\/person\/188d2422a3caa12bb427cee75038b398","name":"designonetest","url":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/author\/designonetest\/"}]}},"_links":{"self":[{"href":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/wp-json\/wp\/v2\/posts\/5165","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/wp-json\/wp\/v2\/comments?post=5165"}],"version-history":[{"count":1,"href":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/wp-json\/wp\/v2\/posts\/5165\/revisions"}],"predecessor-version":[{"id":5183,"href":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/wp-json\/wp\/v2\/posts\/5165\/revisions\/5183"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/wp-json\/wp\/v2\/media\/5167"}],"wp:attachment":[{"href":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/wp-json\/wp\/v2\/media?parent=5165"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/wp-json\/wp\/v2\/categories?post=5165"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cloud03.titletapsites.com\/tabs3-d\/wp-json\/wp\/v2\/tags?post=5165"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}