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 Bowie, MD

Advantages and Disadvantages of a Limited Liability Company (LLC) in Bowie, MD


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 MD 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 MD 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 Bowie, MD
Bortmes Davida
4359 Northview Dr
Bowie, MD 20716
(301) 352-9333
Attorneys, Legal Service Plans
E. Brown Law, LLC
3540 Crain Highway, #331
Bowie, MD 20716
(301) 352-8960
Estate Planning, Probate, & Living Trusts, Divorce Attorneys, Estate Planning Attorneys, Family Law
Cartwright and White
10111 Martin Luther King Jr Hwy
Bowie, MD 20720
(301) 459-8240
Attorneys, Legal Service Plans
Leonrd P
3231 Superior Ln # A
Bowie, MD 20715
(301) 262-8188
General Practice Attorneys
Donnelly Frank P
3060 Mitchellville Rd Ste 218
Bowie, MD 20716
(301) 249-8127
Attorneys, General Practice Attorneys
Byrd Jacqueline D Attorney
14300 Gallant Fox Ln
Bowie, MD 20715
(301) 464-7448
Attorneys
Mc Carthy Kevin J
4201 Northview Dr # 410
Bowie, MD 20716
(301) 262-7422
Attorneys
Law Offfice of Gabriel J. Christian & Associates
3060 Mitchellville Rd Ste 216
Bowie, MD 20716
(301) 850-7367
Attorneys,  Personal Injury Law Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Automobi
Bankruptcy Attorneys In Bowie Area Associates
12148 Central Avenue
Bowie, MD 20721
(301) 660-7136
Bankruptcy Law Attorneys, Bankruptcy Services, Attorneys
Bereano Bryon S
3327 Superior Ln
Bowie, MD 20715
(301) 805-7126
General Practice Attorneys, Attorneys
Alpert Schreyer, LLC
16901 Melford Blvd, Suite #325
Bowie, MD 20715
(301) 262-7005
Attorneys,  Criminal Law Attorneys,  DUI & DWI Attorneys,  Personal Injury Law Attorneys,  Wrongful
Hart Joseph P
16901 Melford Blvd Ste 325
Bowie, MD 20715
(301) 262-7005
Attorneys Referral & Information Service, Attorneys
Lynch Josephine A
4331 Northview Dr
Bowie, MD 20716
(301) 352-6699
Attorneys, Family Law Attorneys, Legal Service Plans
Law Robert H PA
14300 Gallant Fox Ln
Bowie, MD 20715
(301) 390-6600
Attorneys, Legal Service Plans
Law Ofc of Darlene Wright Powell
14300 Gallant Fox Ln
Bowie, MD 20715
(301) 464-6260
Attorneys, General Practice Attorneys, Legal Service Plans
Decesaris Annette
4303 Northview Dr
Bowie, MD 20716
(301) 809-6200
Attorneys
Mc Chesney & Dale
4000 Mitchellville Rd Ste 222
Bowie, MD 20716
(301) 805-6080
Legal Service Plans, Attorneys, Tax Attorneys
Wood Moody Rhonda A
14300 Gallant Fox Ln
Bowie, MD 20715
(301) 262-6000
Attorneys
Adams Law Office
16701 Melford Blvd
Bowie, MD 20715
(301) 805-5892
General Practice Attorneys, Attorneys
Castro Delfin M
12811 Buckingham Dr
Bowie, MD 20715
(301) 464-5742
Attorneys
Fawcett, Kari
14300 Gallant Fox Ln # 120
Bowie, MD 20715
(301) 262-5500
Attorneys, General Practice Attorneys, Legal Service Plans
Edith A. Lawson-Jackson
10111 Martin Luther King Jr Hwy Suite 200
Bowie, MD 20720
(301) 200-5479
Attorneys,  Child Custody Attorneys,  Family Law Attorneys,  Wills, Trusts & Estate Planning Attorn
Randle & Randle
15120 Roving Wood Dr
Bowie, MD 20715
(301) 805-5290
Attorneys, General Practice Attorneys, Legal Service Plans
McChesney & Dale, P.C.
4000 Mitchellville Rd
Bowie, MD 20716
(301) 200-5146
Tax Attorneys,  Attorneys,  Labor & Employment Law Attorneys,  Business Law Attorneys,  Legal Servic
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US