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 Natick, MA

Benefits of a Limited Liability Company (LLC) in Natick, 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 Natick, MA
    Kinder Sally A
    264 N Main St # 2
    Natick, MA 01760
    (508) 652-9888
    Attorneys, Legal Service Plans
    Grassia Murphy & Lupan
    5 Commonwealth Rd Ste 4A
    Natick, MA 01760
    (508) 650-9252
    Attorneys, Legal Service Plans
    Townley F Bradford
    2 Pleasant St N
    Natick, MA 01760
    (508) 650-9044
    Attorneys, Legal Service Plans
    Brian P. Kennedy, Attorney and Counselor at Law
    8 David Drive
    Natick, MA 01760
    (617) 480-8973
    Attorneys, Family Law Attorneys, Divorce Attorneys, Divorce Assistance, Estate Planning Attorneys
    Bloomenthal Law Office
    2 Summer St
    Natick, MA 01760
    (508) 315-8200
    General Practice Attorneys, Attorneys
    Keough Paul J
    2 Summer St
    Natick, MA 01760
    (508) 653-8120
    Arbitration Services,  Attorneys,  Mediation Services,  Legal Service Plans
    Charles Gale
    207 W Central St
    Natick, MA 01760
    (508) 907-7013
    General Practice Attorneys, Attorneys
    Milberg Melinda
    220 N Main St
    Natick, MA 01760
    (508) 655-6800
    Arbitration Services,  Attorneys,  Mediation Services,  Legal Service Plans
    Mahaney John D
    10 Eliot St
    Natick, MA 01760
    (508) 653-6560
    General Practice Attorneys, Attorneys
    Mahaney Gerard
    10 Eliot St
    Natick, MA 01760
    (508) 653-6560
    Attorneys, General Practice Attorneys
    Natick General Practice
    67 Union St
    Natick, MA 01760
    (508) 907-6201
    Legal Service Plans, Attorneys
    Crossley Law Offices
    25 N Main Street, Suite #1
    Natick, MA 01760
    (508) 655-6085
    Bankruptcy Law Attorneys,  Family Law Attorneys,  Immigration Law Attorneys,  Personal Injury Law At
    Marr David E
    199 Union St
    Natick, MA 01760
    (508) 655-5522
    Tax Attorneys, Tax Return Preparation, Attorneys, Tax Return Preparation-Business, General Practice
    Sullivan John F
    4 Pleasant St N
    Natick, MA 01760
    (508) 653-5400
    Attorneys
    Alexander Craig
    9 Harvest Moon Dr
    Natick, MA 01760
    (508) 647-4946
    General Practice Attorneys
    Keats McFarland & Wilson
    21 Eliot St Ste 6
    Natick, MA 01760
    (508) 651-4900
    Attorneys, Legal Service Plans
    Wolf Law Offices
    74 W Central St
    Natick, MA 01760
    (508) 651-3911
    General Practice Attorneys, Attorneys
    Danis Lewis Law Office
    264 N Main St
    Natick, MA 01760
    (508) 655-3556
    General Practice Attorneys, Attorneys
    Hadlock Law Offices
    679 Worcester ST
    Natick, MA 01760
    (508) 405-2000
    General Practice Attorneys, Attorneys
    Doran, Francis M - Doran & Doran
    20 Main St # 1
    Natick, MA 01760
    (508) 653-1761
    Accident & Property Damage Attorneys,  Attorneys,  Criminal Law Attorneys,  Personal Injury Law Atto
    Musgrave Alan S Law Offices
    811 Pleasant St S
    Natick, MA 01760
    (508) 650-1583
    Attorneys
    Mc Cue Matthew
    1 South Ave
    Natick, MA 01760
    (508) 655-1415
    General Practice Attorneys, Attorneys
    Emily Towne McNeil
    8 Lotus Path
    Natick, MA 01760
    (508) 962-1387
    Attorneys
    Scimone David
    5 Commonwealth Rd Ste 4B
    Natick, MA 01760
    (508) 651-1090
    Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US