Easy Questions  
Free Legal Documents

Orientation to Limited Liability Companies (LLCs) in Charlestown, MD

Orientation to Limited Liability Companies (LLCs) in Charlestown, MD


I've missed more than 9,000 shots in my career. I've lost almost 300 games. 26 times I've been trusted to take the game winning shot and missed. I've failed over and over and over again in my life and that is why I succeed.
 
- Michael Jordan


A Limited Liability Company (LLC), just like a corporation, offers protection from personal liability for business debts. But, unlike a corporation, which pays its own taxes, an LLC is a pass-through tax entity in which the profits and losses pass-through its owners who report it on their personal tax returns.


How to Form an LLC

  • File "Articles of Organization" with your state government including the name, address, and phone number of the business, and the name of the person who is the "registered agent" of the company. Depending on the state, the names of all LLC members are sometimes requested.
  • Create a written LLC operating agreement. This is a crucial document because it includes the rights and responsibilities of the LLC members. It can also include the percentage interest and the shares of profits of the members.
  • Main Features of an LLC



    Limited Personal Liability

    All LLC members are spared from personal liability for business claims and debts. A creditor cannot go after them and demand payment from their personal assets. The assets of the LLC are used to pay off debts, and the only thing members stand to lose is their investment in the business.

    Exceptions to Limited Personal Liability

    Limited personal liability can be enjoyed by an LLC when doing business transactions, but this protection is not fixed. This particular downside also applies to corporations. An LLC owner can be held liable if he/she:

  • Intentionally does something fraudulent, illegal, or reckless that causes harm to the company or to someone else.
  • Fails to pay taxes withheld from employees' wages.
  • Personally and directly injures someone.
  • Personally guarantees a bank loan or a business debt on which the LLC defaults.
  • Treats the LLC as an extension of his/her personal affairs rather than as a separate legal entity.


  • Business Protection

    Your personal assets can be protected by a good liability insurance which is not possible with a limited liability protection. If you are practicing your craft and accidentally injure someone, your liability insurance policy will cover you. In the event of a court proceeding, your insurance can protect your personal assets if the limited liability status is disregarded by the court.

    LLC Taxes

    An LLC is a "pass-through" entity where the business income passes through the business to the LLC members who will report their share of profits or losses on their individual income tax returns. All LLC members make a quarterly estimated tax payment to the IRS.

    LLC Management

    Member management means participating equally in the management of business. Manager management refers to designating one or more owners, or even outsiders, to take responsibility for managing the LLC. In a manager-managed LLC, only those named "manager" can vote with regards to management decisions and act as an agent of the LLC.


    Ending an LLC

    Depending on the laws of your state, or as indicated in the operating agreement, when one member leaves, the LLC dissolves. The remaining members will be responsible for meeting the business obligations left behind, pay the debts, and divide the remaining assets and profits among themselves. The decision to create a new LLC with the remaining members can be discussed. In order to avoid this kind of abrupt ending, your LLC operating agreement can include a "buy-sell" or "buyout" clause with guidelines on what will happen if a member decides to leave to pursue other interests, retires, or dies.

     
    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