Easy Questions  
Free Legal Documents

Advantages and Disadvantages of a Limited Liability Company (LLC) in Abell, MD

Advantages and Disadvantages of a Limited Liability Company (LLC) in Abell, MD


Grit is often the single-most predictor of success.
 
- Jonah Lehrer


Overview:


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 MD Last Will Download 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 MD Living Will Download this Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Related Legal Services near Abell, MD
Grant Patent Svc
2107 Hounds Run Pl
Silver Spring, MD 20906
(301) 603-9071
Attorneys
Fay Kaplan Law, P.A.
2048 Merrifields Dr
Silver Spring, MD 20906
(202) 644-8854
Attorneys,  Accident & Property Damage Attorneys,  Personal Injury Law Attorneys,  Legal Service Pla
Nystrom Paul E
1805 Middlevale Ter
Silver Spring, MD 20906
(301) 949-8644
Attorneys, Legal Service Plans
Parris Keith A
9470 Annapolis Rd Ste 312
Lanham, MD 20706
(301) 306-8222
General Practice Attorneys, Attorneys, Legal Service Plans
House of Gabriel
4102 Peppertree Ln
Silver Spring, MD 20906
(301) 996-7676
Attorneys
Oladokun AG
9470 Annapolis Rd Ste 314
Lanham, MD 20706
(240) 582-7529
General Practice Attorneys, Attorneys
Bankruptcy Center
5852 Belair Rd
Baltimore, MD 21206
(410) 426-7400
Bankruptcy Law Attorneys, Bankruptcy Services, Attorneys
Chlan Charles E As
7200 Belair Rd
Baltimore, MD 21206
(410) 882-7258
General Practice Attorneys, Attorneys
Maryland Evictions Online
9900-E Greenbelt Rd Suite 199
Lanham, MD 20706
(301) 485-6335
Real Estate Attorneys, Real Estate Rental Service, Real Estate Management, Eviction Service
Culotta Samuel A
6305 Belair Rd Ste 2
Baltimore, MD 21206
(410) 444-6300
Attorneys, Legal Service Plans
Hammel Law & Associates
9501 Sheridan St
Lanham, MD 20706
(240) 393-4935
Divorce Attorneys, Attorneys, Family Law Attorneys, Legal Service Plans
Johnine Clark Law Offices
9801 Greenbelt Rd Ste 208
Lanham, MD 20706
(301) 336-4900
Attorneys
Baker & Gaffigan
5900 Princess Garden Pkwy Ste 450
Lanham, MD 20706
(301) 577-4600
Accident & Property Damage Attorneys,  Attorneys,  Family Law Attorneys,  Personal Injury Law Attorn
Sofela & Associates
9470 Annapolis Rd Ste 410
Lanham, MD 20706
(301) 306-4266
General Practice Attorneys, Attorneys, Legal Service Plans
Palge Frederick Sr Elder
9210 Alcona St
Lanham, MD 20706
(301) 459-3919
Attorneys
Sharon Theodore Lewis & Associates
9470 Annapolis Rd
Lanham, MD 20706
(240) 296-3488
General Practice Attorneys, Attorneys
Levenstein Herbert
9831 Greenbelt Rd Ste 205
Lanham, MD 20706
(301) 552-3330
Attorneys, Legal Service Plans
Brandt-Bulbin Jane
16133 Chester Mill Ter
Silver Spring, MD 20906
(301) 260-2929
Attorneys, Legal Service Plans
James L Rhodes ESQ
6600 Belair Rd
Baltimore, MD 21206
(410) 254-2404
Attorneys, Legal Service Plans
Anthony David Freeman
9831 Greenbelt Road, Suite 208
Seabrook, MD 20706
(240) 667-1654
Attorneys,  Accident & Property Damage Attorneys,  Personal Injury Law Attorneys,  General Practice
Dross Justin S
9831 Greenbelt Rd Ste 208
Lanham, MD 20706
(240) 667-1643
General Practice Attorneys, Attorneys, Legal Service Plans
Jerome Stanbury Law Office
9500 Annapolis Rd # B5
Lanham, MD 20706
(301) 459-1414
Attorneys, Legal Service Plans
Greene Ronald B
9500 Annapolis Rd Ste B5
Lanham, MD 20706
(301) 577-1300
Attorneys, Legal Service Plans
Tjaden John R
13415 Connecticut Ave # 104
Silver Spring, MD 20906
(301) 460-0700
Attorneys, General Practice Attorneys, Legal Service Plans
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US