12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
 
FINANCIAL & MARITAL

Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
 

Advantages and Disadvantages of a Limited Liability Company (LLC) in Baldwinville, MA

Advantages and Disadvantages of a Limited Liability Company (LLC) in Baldwinville, MA


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


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 MA Last Will Create 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 MA Living Will Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Related Legal Services near Baldwinville, MA
Peres Issac
1 Westinghouse Plz
Hyde Park, MA 02136
(857) 345-9497
General Practice Attorneys, Attorneys, Legal Service Plans
Waldron Thomas
323 Bennett Rd
Hampden, MA 01036
(413) 566-8500
Attorneys, Legal Service Plans
Sarah Shand Duzan Law Offices
1259 Hyde Park Ave # 126
Hyde Park, MA 02136
(617) 364-8400
General Practice Attorneys, Attorneys
Lowney Medical Assoc
1234 Hyde Park Ave # 102
Hyde Park, MA 02136
(617) 364-8000
General Practice Attorneys, Attorneys, Legal Service Plans
Welsh Richard
80 Worcester St # 5
North Grafton, MA 01536
(508) 839-7713
Attorneys, Legal Service Plans
Yellin & Hyman, P.C.
1259 Hyde Park Ave., Suite 128
Hyde Park, MA 02136
(617) 361-5310
Family Law Attorneys,  Workers Compensation & Disability Insurance,  Personal Injury Law Attorneys,
Mc Ewan James A
484 Main St
Hampden, MA 01036
(413) 566-5300
Attorneys, Legal Service Plans
Shagoury Paul
7 Dell Ter
Hyde Park, MA 02136
(617) 361-4940
General Practice Attorneys, Attorneys
Joseph J Pulgini Law Offices
214 Neponset Valley Pkwy
Hyde Park, MA 02136
(617) 364-4110
Attorneys,  Labor & Employment Law Attorneys,  Social Security & Disability Law Attorneys,  Personal
Boesen Irwin
100 Business St
Hyde Park, MA 02136
(617) 333-3333
Attorneys, Legal Service Plans
NAM - National Arbitration and Mediation
20 West Street
Boston, MA 02136
(800) 358-2550
Attorneys Support & Service Bureaus,  Business Litigation Attorneys,  Arbitration & Mediation Attorn
Higgins Sean P
31 Teaticket Hwy Ste 7
Teaticket, MA 02536
(781) 848-2222
Attorneys, Legal Service Plans
Hagemeyer David
1 Westinghouse Plz
Hyde Park, MA 02136
(617) 361-1163
Attorneys
David Hagemeyer
4 Kovey Ct
Hyde Park, MA 02136
(617) 361-1163
Attorneys
Lecomte John E
127 Portside Cir
East Falmouth, MA 02536
(508) 540-0652
Attorneys, Legal Service Plans
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US