Find More Articles
12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents™
 
ESTATE PLANNING
Last Will and Testament
Living Trust
Living Will for Healthcare
 
FINANCIAL & MARITAL
Power of Attorney
Premarital Agreement
Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
BUSINESS
General Partnership
Consulting Agreement
Employee Documents coming soon!
Incorporation coming soon!
Limited Liability Company coming soon!
 

Benefits of a Limited Liability Company (LLC) in Leominster, MA

Benefits of a Limited Liability Company (LLC) in Leominster, MA


Your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma - which is living with the results of other people's thinking. Don't let the noise of other's opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.
 
- Steve Jobs


A limited liability company (LLC) is similar to a Partnership but has the liability protection for the owners that a corporation offers without the formalities, paperwork and fees. All new LLCs must file articles of organization with their secretary of state's office.

You should draft an operating agreement for your LLC that spells out the details of the business arrangement, including members' percentage ownership, roles, rights and responsibilities.

The LLC structure is a good way to "wall off" your personal assets from your company's liabilities, offering protection for your personal assets in the event of a liability or judgment against your business.

A limited liability company (LLC) also has certain tax advantages. The business itself is not responsible for taxes on its profits. Instead, the LLC's owners, known as "members," report their share of business profit and loss on their personal tax returns, similar to tax reporting for a General Partnership. This is known as "pass-through" taxation.


There are many benefits to an LLC structure.

  • Protected assets: LLCs provide limited liability protection to their owners (members), who are typically not personally responsible for the business debts and liabilities of the LLC. Creditors cannot pursue the personal assets (house, savings accounts, etc.) of the owners to pay business debts. Conversely, in a sole proprietorship or General Partnership, owners and the business are legally considered the same—leaving personal assets vulnerable.
  • Pass-through taxation: LLCs typically do not pay taxes at the business level. Any business income or loss is "passed-through" to owners and reported on their personal income tax returns. Any tax due is paid at the individual level.
  • Heightened credibility: Forming an LLC may help a new business establish credibility with potential customers, employees, vendors and partners because they see you have made a formal commitment to your business.
  • Limited compliance requirements: LLCs face fewer state-imposed annual requirements and ongoing formalities than S corporations and C corporations.
  • Flexible management structure: LLCs are free to establish any organizational structure agreed upon by the company owners. LLCs can be managed by the owners (members) or by managers, unlike corporations which have a board of directors who oversee the major business decisions of the company and officers who manage the day-to-day affairs.
  • Few restrictions: There are few restrictions on who can be an LLC owner or how many owners an LLC may have (unlike S corporations).


    • Potential LLC Disadvantages

    LLCs may have some potential disadvantages, including:

  • Formation and ongoing expenses: To form an LLC, Articles of Organization must be filed with the state and the applicable state filing fees paid. Many states impose ongoing fees, such as annual report and/or franchise tax fees. While these fees often are not very expensive for small businesses, LLC formation is more expensive than that of a sole proprietorship or General Partnership, both of which are not required to file formation documents with the state. A few states, such as New York and Arizona, also require LLC owners to publish notice of the LLC formation in local newspapers for several weeks. This can be costly.
  • Transferable ownership: Ownership in an LLC is often harder to transfer than with a corporation. With corporations, shares of stock can be sold to increase ownership. Typically with LLCs, all owners must approve adding new owners or altering the ownership percentages of existing owners.
  • Less precedent: Because the LLC is a newer type of business structure, there is not as much case law or legal precedent for LLCs as there is for corporations.

    •  
    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 Leominster, MA
    Patricia J. Smith
    588 Main Street
    Leominster, MA 01453
    (978) 534-9900
    Attorneys
    Lanza-Vowles Janie
    12 Main St # 12
    Leominster, MA 01453
    (978) 534-9771
    General Practice Attorneys, Attorneys, Legal Service Plans
    Gaudet Lynn M
    3 Park St # 2
    Leominster, MA 01453
    (978) 534-9700
    Attorneys
    Cirillo Robt J Jr Law Office
    73 Sawyer Way
    Leominster, MA 01453
    (978) 537-9525
    General Practice Attorneys, Attorneys, Legal Service Plans
    Cirillo Robert J
    2 School St
    Leominster, MA 01453
    (978) 537-9525
    General Practice Attorneys, Attorneys, Legal Service Plans
    Christine E. Carima
    37 Chalmers Street
    Leominster, MA 01453
    (978) 413-9077
    Civil Litigation & Trial Law Attorneys, Consumer Law Attorneys, Family Law Attorneys, Landlord & Ten
    Thalheimer Nicholas
    100 Erdman Way # 101
    Leominster, MA 01453
    (978) 840-9009
    General Practice Attorneys, Attorneys
    Lumelsky E
    435 Lancaster St
    Leominster, MA 01453
    (978) 751-8265
    General Practice Attorneys, Attorneys
    Allen Gail M
    90 Main St
    Leominster, MA 01453
    (978) 534-7111
    Attorneys, Legal Service Plans
    Mark Ellis O'Brien Law
    17D Fernwood Dr
    Leominster, MA 01453
    (978) 227-5817
    Personal Injury Law Attorneys, Civil Litigation & Trial Law Attorneys, Criminal Law Attorneys
    Richard E Hastings
    583 N Main St
    Leominster, MA 01453
    (978) 466-5712
    Attorneys
    Ouimet Robert D
    160 Mechanic St
    Leominster, MA 01453
    (978) 534-4986
    Attorneys
    Pellegrini Joseph
    42 Main St # 8
    Leominster, MA 01453
    (978) 537-4949
    Attorneys, Legal Service Plans
    Di Sesa Christopher
    11 Park St # 3
    Leominster, MA 01453
    (978) 537-4841
    General Practice Attorneys, Attorneys
    John J Curley
    59 Merriam Ave
    Leominster, MA 01453
    (978) 401-4562
    Attorneys
    Plaza Edwin
    25 State St
    Leominster, MA 01453
    (978) 728-4316
    Accident & Property Damage Attorneys
    Guerrero Elizabeth
    368 Central St
    Leominster, MA 01453
    (978) 466-3567
    General Practice Attorneys, Attorneys
    Mc Evilly Michael
    90 Main St
    Leominster, MA 01453
    (978) 534-3556
    Attorneys, Legal Service Plans
    Vittorioso Carol
    19 Water St
    Leominster, MA 01453
    (978) 537-3500
    General Practice Attorneys, Attorneys
    Burwick & Dynice PC
    14 Monument Sq # 305
    Leominster, MA 01453
    (978) 537-3333
    Bankruptcy Services,  Attorneys,  General Practice Attorneys,  Bankruptcy Law Attorneys
    Roncone Law Offices P.C.
    142 Main St
    Leominster, MA 01453
    (978) 534-2444
    Personal Injury Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Divorce
    Antonioni, Robert Antonioni & Antonioni
    42 Main St # 5
    Leominster, MA 01453
    (978) 537-1912
    Insurance Attorneys,  Attorneys,  Labor & Employment Law Attorneys,  Personal Injury Law Attorneys,
    Eusey Charles
    42 Main St # 4
    Leominster, MA 01453
    (978) 534-1414
    Attorneys, Legal Service Plans
    De Pasquale Carolyn G
    36 School St
    Leominster, MA 01453
    (978) 840-1020
    Arbitration Services,  Attorneys,  Mediation Services,  Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US