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 Silver Spring, MD

Benefits of a Limited Liability Company (LLC) in Silver Spring, 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 Silver Spring, MD
    Breads & Associates
    8737 Colesville Rd Ste LL-100A
    Silver Spring, MD 20910
    (301) 585-9800
    Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Child Custody Attorneys,  Legal Service Plans
    Breads & Associates
    8737 Colesville Rd Ll-100A
    Silver Spring, MD 20910
    (301) 585-9800
    Attorneys, Family Law Attorneys, Divorce Attorneys, Child Custody Attorneys, Legal Service Plans
    Hyatt Legal Services
    8737 Colesville Rd Ste LL100
    Silver Spring, MD 20910
    (301) 585-9800
    Attorneys, Legal Service Plans
    Thompson Errol
    8121 Georgia Ave # 701B
    Silver Spring, MD 20910
    (301) 585-9700
    Attorneys, General Practice Attorneys, Legal Service Plans, Immigration Law Attorneys, Immigration &
    Alan Banov & Associates
    1100 Wayne Ave Suite 900
    Silver Spring, MD 20910
    (301) 588-9699
    Labor & Employment Law Attorneys,  Sexual Harassment Attorneys,  Attorneys,  Discrimination & Civil
    Banov Alan
    8401 Colesville Rd Ste 325
    Silver Spring, MD 20910
    (301) 588-9699
    Arbitration Services,  Attorneys,  Mediation Services,  Legal Service Plans
    Gary H. Gerstenfield
    8720 Georgia Ave #301.
    Silver Spring, MD 20910
    (301) 589-9500
    Criminal Law Attorneys, Attorneys, DUI & DWI Attorneys
    Joshua Moses & Assoc
    8605 Cameron St # 316
    Silver Spring, MD 20910
    (301) 589-9488
    Immigration Law Attorneys, Attorneys, General Practice Attorneys, Immigration & Naturalization Consu
    Holly Reed III Law Office
    8720 Georgia Ave
    Silver Spring, MD 20910
    (301) 587-9480
    General Practice Attorneys, Attorneys, Legal Service Plans
    Greenberg Gregg C
    8403 Colesville Rd Ste 610
    Silver Spring, MD 20910
    (301) 587-9373
    Attorneys
    Mena Maria
    8121 Georgia Ave Ste 406
    Silver Spring, MD 20910
    (301) 562-9255
    Personal Injury Law Attorneys, Insurance Attorneys, Attorneys
    Armstrong III William J
    1804 Briggs Chaney Rd
    Silver Spring, MD 20905
    (301) 384-9233
    Attorneys, Legal Service Plans
    Northern Christina
    8455 Colesville Rd Ste 1080
    Silver Spring, MD 20910
    (301) 562-9212
    Attorneys
    Cooper Steven M
    8720 Georgia Ave # 701
    Silver Spring, MD 20910
    (301) 587-9170
    Attorneys,  Family Law Attorneys,  Accident & Property Damage Attorneys,  Personal Injury Law Attorn
    Grant Patent Svc
    2107 Hounds Run Pl
    Silver Spring, MD 20906
    (301) 603-9071
    Attorneys
    Archibong Law Firm, llc
    914 Silver Spring Ave. Ste 116
    Silver Spring, MD 20910
    (240) 472-8959
    Divorce Attorneys, DUI & DWI Attorneys, Federal Law Attorneys, Bankruptcy Services, Legal Service Pl
    Fallow Charles
    10 Post Office Rd Ste 100
    Silver Spring, MD 20910
    (301) 589-8900
    Attorneys
    Fay Kaplan Law, P.A.
    2048 Merrifields Dr
    Silver Spring, MD 20906
    (202) 644-8854
    Attorneys,  Accident & Property Damage Attorneys,  Personal Injury Law Attorneys,  Legal Service Pla
    Atiq Ahmed
    8701 Georgia Ave # 509
    Silver Spring, MD 20910
    (301) 587-8844
    Attorneys, General Practice Attorneys, Legal Service Plans
    Simmons Luiz R S
    8613 Cedar St
    Silver Spring, MD 20910
    (301) 589-8844
    Attorneys, Legal Service Plans
    Zimmerman Ira E
    8630 Fenton St # 320
    Silver Spring, MD 20910
    (301) 588-8826
    Attorneys, Legal Service Plans
    Ofori Law Firm
    11215 Lockwood Dr
    Silver Spring, MD 20901
    (301) 592-8818
    General Practice Attorneys, Attorneys, Legal Service Plans
    Davis Henry
    8715 1st Ave
    Silver Spring, MD 20910
    (301) 589-8816
    Attorneys, Legal Service Plans
    Walker Chandra
    8701 Georgia Ave # 408
    Silver Spring, MD 20910
    (301) 587-8722
    General Practice Attorneys, Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US