Easy Questions  
Free Legal Documents

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

Advantages and Disadvantages of a Limited Liability Company (LLC) in Charlestown, 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 Charlestown, MD
Callegary & Steedman
24 Office St
Bel Air, MD 21014
(410) 399-9997
Attorneys, Legal Service Plans
Kahoe Robert F Jr
9 S Hickory Ave
Bel Air, MD 21014
(410) 879-9906
Attorneys, Legal Service Plans
Plum Jeffrey J
108 N Bond St
Bel Air, MD 21014
(410) 879-9898
General Practice Attorneys, Attorneys, Legal Service Plans
Modell David
7700 Old Georgetown Rd Ste 500
Bethesda, MD 20814
(301) 634-9820
Attorneys
Brooks David
4405 E West Hwy Ste 601
Bethesda, MD 20814
(301) 654-9780
Attorneys, General Practice Attorneys
Kennedy & Baris LLP
4330 E West Hwy Ste 301
Bethesda, MD 20814
(301) 263-9734
Attorneys Referral & Information Service, Legal Service Plans, Attorneys
Ruben & Aronson LLP
4800 Montgomery Ln Ste 150
Bethesda, MD 20814
(301) 901-9696
Attorneys, Legal Service Plans
Robin Dennis R
2131 Defense Hwy Ste 1
Crofton, MD 21114
(410) 721-9680
Attorneys
Scull David L
7960 Old Georgetown Rd Ste 8C
Bethesda, MD 20814
(301) 913-9660
General Practice Attorneys, Attorneys
Estates
7960 Old Georgetown Rd
Bethesda, MD 20814
(301) 913-9660
Estate Planning Attorneys, Attorneys
Jonathan Drumgoole, NCC,LCPC
139 N Main St
Bel Air, MD 21014
(443) 955-9648
Family Law Attorneys, Attorneys, Divorce Assistance
Obecney, Carlton T - Selzer Gurvitch Rabin Obecny
4416 E West Hwy Ste 400
Bethesda, MD 20814
(301) 986-9600
Litigation & Tort Attorneys, Attorneys
Selig Barry F
4300 Montgomery Ave # 104B
Bethesda, MD 20814
(301) 986-9575
General Practice Attorneys, Attorneys, Legal Service Plans
Ezeala Jude C
5521 Harford Rd
Baltimore, MD 21214
(410) 922-9456
Attorneys
Hillman Arthur
3 Bethesda Metro Ctr # 530
Bethesda, MD 20814
(301) 718-9447
Attorneys
Sherman Arnold B
4800 Hampden Ln # 7th
Bethesda, MD 20814
(301) 951-9377
Attorneys
Koch Daniel S
4800 Hampden Ln
Bethesda, MD 20814
(301) 951-9371
General Practice Attorneys, Attorneys, Title Companies
Eisler Alan D
4800 Hampden Ln
Bethesda, MD 20814
(301) 951-9357
General Practice Attorneys, Attorneys
Dumais Kathleen M
4800 Hampden Ln # 700
Bethesda, MD 20814
(301) 951-9353
General Practice Attorneys, Attorneys
Hamayoun Aresh
4800 Hampden Ln
Bethesda, MD 20814
(301) 951-9343
Attorneys, Legal Service Plans
Cohn Debra A
4800 Hampden Ln
Bethesda, MD 20814
(301) 951-9341
Attorneys, Legal Service Plans
Fox Diane A
4800 Hampden Ln # 700
Bethesda, MD 20814
(301) 951-9336
General Practice Attorneys, Attorneys
Janowich John W
108 N Bond St
Bel Air, MD 21014
(410) 836-9329
Attorneys, Legal Service Plans
Eastman Hope B
4800 Hampden Ln # 700
Bethesda, MD 20814
(301) 951-9326
Attorneys, Legal Service Plans
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US