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 Newbury, MA

Benefits of a Limited Liability Company (LLC) in Newbury, 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 Newbury, MA
    Gathua Pascalina
    225 Stedman St
    Lowell, MA 01851
    (978) 275-9555
    General Practice Attorneys, Attorneys
    Gorovitz & Borten
    400 Totten Pond Rd, 2nd Floor
    Waltham, MA 02451
    (781) 890-9095
    Malpractice Law Attorneys, Medical Malpractice Attorneys, Attorneys, General Practice Attorneys
    Thoronka Law Offices
    225 Stedman St Ste 42
    Lowell, MA 01851
    (978) 561-9044
    Attorneys, General Practice Attorneys, Legal Service Plans, Legal Clinics, Criminal Law Attorneys
    Susan Castleton Ryan, P.C.
    676 Bedford St
    Abington, MA 02351
    (781) 982-8850
    Legal Service Plans,  Family Law Attorneys,  Attorneys,  Child Custody Attorneys,  Divorce Attorneys
    Lepore & Hochman Law Offices
    1 Sprague St
    Revere, MA 02151
    (781) 286-8800
    General Practice Attorneys, Attorneys
    Hamilton & Hamilton, P.C.
    393 Totten Pond Road, 4th Floor
    Waltham, MA 02451
    (781) 894-8700
    Personal Injury Law Attorneys
    Audrey Heidt Law Office
    9 Spring St
    Waltham, MA 02451
    (781) 916-8657
    Attorneys, Legal Service Plans
    Machera Joseph J Atty
    220 Beach St
    Revere, MA 02151
    (781) 289-8646
    Attorneys
    Kelman Peter
    375 Totten Pond Rd Ste 102
    Waltham, MA 02451
    (781) 684-8448
    Attorneys, General Practice Attorneys
    Louis S. Haskell
    16 Pine St # 2
    Lowell, MA 01851
    (978) 459-8359
    General Practice Attorneys, Attorneys, Legal Service Plans
    Kelleher Maureen
    16 Pine St # 2
    Lowell, MA 01851
    (978) 459-8359
    Attorneys, Legal Service Plans
    Mann Steven F
    393 Totten Pond Rd
    Waltham, MA 02451
    (781) 890-8228
    Attorneys, General Practice Attorneys
    Lupo Robert N
    721 Main St # 2
    Waltham, MA 02451
    (781) 893-7888
    General Practice Attorneys, Attorneys
    CONSULADO EXPRESS
    10 Yeamans St Unit 22
    Revere, MA 02151
    (617) 970-7855
    Immigration Law Attorneys, Consulates & Other Foreign Government Representatives, Passport Photo & V
    Stevenson Johnson & Barns Lwyrs
    1601 Trapelo Rd
    Waltham, MA 02451
    (781) 487-7848
    General Practice Attorneys, Attorneys
    Erickson Joanne L
    360 Brockton Ave # 202
    Abington, MA 02351
    (781) 871-7223
    General Practice Attorneys, Attorneys, Legal Service Plans
    Brams Young & Levinson
    1601 Trapelo Rd Ste 154
    Waltham, MA 02451
    (781) 890-6999
    General Practice Attorneys, Attorneys, Legal Service Plans
    Cohn A Richard
    707 Main St
    Waltham, MA 02451
    (781) 893-6249
    General Practice Attorneys, Attorneys, Legal Service Plans
    Topkins & Bevans
    255 Bear Hill Rd Ste 3
    Waltham, MA 02451
    (781) 890-6230
    Attorneys, Legal Service Plans
    Leahey George B
    16 Pine St # 6
    Lowell, MA 01851
    (978) 459-6195
    Attorneys, Legal Service Plans
    Pass Harry I
    436 Revere Beach Blvd
    Revere, MA 02151
    (781) 284-6080
    Attorneys
    D'Angio Louis A
    11 Spring St
    Waltham, MA 02451
    (781) 894-6028
    General Practice Attorneys, Attorneys
    Suos Professional Helping Hand
    111 Chelmsford St
    Lowell, MA 01851
    (978) 654-5909
    Attorneys, Immigration Law Attorneys, Immigration & Naturalization Consultants
    Villiotte Richard B
    385 Broadway # 307
    Revere, MA 02151
    (781) 289-5865
    Attorneys
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US