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 Columbia, MD

Benefits of a Limited Liability Company (LLC) in Columbia, MD


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 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 Columbia, MD
    Beth L Rogers Attorney-At-Law
    8850 Columbia 100 Pkwy # 303
    Columbia, MD 21045
    (410) 740-9996
    Attorneys, Legal Service Plans
    Matt P. Lavine
    10480 Little Patuxent Pkwy
    Columbia, MD 21044
    (410) 997-9979
    Attorneys
    McCartney Donald J ESQ
    10420 Little Patuxent Pkwy
    Columbia, MD 21044
    (410) 715-9934
    General Practice Attorneys, Attorneys, Legal Service Plans
    Lerer Tracey L
    8815 Centre Park Dr
    Columbia, MD 21045
    (410) 740-9917
    Attorneys, Legal Service Plans
    Fred A. Cohen P.A.
    5537 Twin Knolls Rd Suite 440
    Columbia, MD 21045
    (410) 581-9900
    Divorce Attorneys,  Domestic Violence Attorneys,  Child Custody Attorneys,  Attorneys,  Family Law A
    Durbin Willman & Associates
    10450 Shaker Dr
    Columbia, MD 21046
    (410) 715-9900
    Attorneys, Legal Service Plans
    Columbia Mediation
    10974 Trotting Ridge Way
    Columbia, MD 21044
    (410) 997-9755
    Arbitration Services
    Columbia Mediation
    8889 Warm Granite Dr
    Columbia, MD 21045
    (410) 997-9755
    Mediation Services, Arbitration Services
    Thienel Law Firm
    10624 Harpoon Hl
    Columbia, MD 21044
    (443) 535-9714
    Attorneys,  General Practice Attorneys,  Legal Service Plans,  Family Law Attorneys,  Corporation &
    Kurlander Bruce
    10215 Rutland Round Rd
    Columbia, MD 21044
    (410) 992-9660
    Attorneys, Legal Service Plans
    Immigration Services - Zhao-King, LLC
    STE 300, 10440 Little Pkwy
    Columbia, MD 21044
    (410) 461-9629
    Immigration Law Attorneys
    Corrie Boulay Law Offices
    10320 Little Patuxent Pkwy
    Columbia, MD 21044
    (410) 964-9622
    Attorneys, Family Law Attorneys, Divorce Attorneys
    Michael Silverman Law Firm
    30 Corporate Ctr Suite 570
    Columbia, MD 21044
    (866) 787-9471
    Divorce Attorneys, Attorneys, Family Law Attorneys, Legal Service Plans
    Maseritz Guy B
    5040 Rushlight Path
    Columbia, MD 21044
    (410) 997-9400
    Attorneys,  Legal Service Plans,  Patent, Trademark & Copyright Law Attorneys,  Estate Planning Att
    Huffman Byron L
    5550 Sterrett Pl # 204
    Columbia, MD 21044
    (410) 730-9300
    Attorneys, Legal Service Plans
    F G Antenberg Chartered
    10025 Governor Warfield Pkwy
    Columbia, MD 21044
    (410) 992-9113
    Attorneys, Legal Service Plans
    Lebowitz Neil R
    10440 Little Patuxent Pkwy #570
    Columbia, MD 21044
    (410) 730-9010
    Personal Injury Law Attorneys, Insurance Attorneys, Attorneys
    Portner & Shure
    9160 Red Branch Rd
    Columbia, MD 21045
    (301) 854-9000
    General Practice Attorneys, Attorneys
    Pazulski Leonard H
    6421 Distant Melody Pl
    Columbia, MD 21044
    (443) 535-8915
    Attorneys, Legal Service Plans
    Schwartz Alan M
    9841 Broken Land Pkwy # 109
    Columbia, MD 21046
    (410) 290-8888
    Attorneys
    Weinberg and Green
    10480 Little Patuxent Pkwy
    Columbia, MD 21044
    (410) 740-8500
    Attorneys, Legal Service Plans
    Heydon Beverly I Attorney
    5950 Symphony Woods Rd
    Columbia, MD 21044
    (410) 730-7887
    Attorneys
    Deborah Dwyer Law Offices
    5950 Symphony Woods Rd Ste 618
    Columbia, MD 21044
    (410) 730-7887
    Attorneys, General Practice Attorneys, Legal Service Plans
    Adler Harry R
    2000 Century Plz # 420
    Columbia, MD 21044
    (410) 730-7737
    Attorneys,  General Practice Attorneys,  Legal Service Plans,  Personal Injury Law Attorneys,  Wrong
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US