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 Upper Marlboro, MD

Benefits of a Limited Liability Company (LLC) in Upper Marlboro, 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 Upper Marlboro, MD
    Troy D. Lowe
    14456 Old Mill Road, Suite 201
    Upper Marlboro, MD 20772
    (301) 485-9868
    Personal Injury Law Attorneys, Criminal Law Attorneys, Traffic Law Attorneys
    Ruppert R Thomas ESQ
    14700 Main St Ste 102
    Upper Marlboro, MD 20772
    (301) 952-9760
    Attorneys
    Ralph Larry Warren
    1300 Mercantile Ln Suite 158
    Upper Marlboro, MD 20774
    (301) 773-9393
    Personal Injury Law Attorneys,  Attorneys,  Hearing Aids & Assistive Devices,  Police Departments,  
    Zarbin Law Firm
    14503 Main St
    Upper Marlboro, MD 20772
    (301) 780-9253
    Attorneys,  Accident & Property Damage Attorneys,  Personal Injury Law Attorneys,  Legal Service Pla
    Frye Erik D
    14452 Old Mill Rd Ste 301
    Upper Marlboro, MD 20772
    (301) 780-9223
    Attorneys, Legal Service Plans
    Martucci & Frye
    14452 Old Mill Rd Ste 201
    Upper Marlboro, MD 20772
    (301) 780-9020
    Attorneys, Legal Service Plans
    Potter, Deborah L - Jaklitsch Law Group
    14350 Old Marlboro Pike
    Upper Marlboro, MD 20772
    (301) 645-9001
    Litigation & Tort Attorneys, Attorneys
    Stan Derwin Brown, LLC
    1300 Caraway Court, Suite 101
    Upper Marlboro, MD 20774
    (301) 883-8888
    Attorneys, General Practice Attorneys
    R M Sealey Law Office
    6231 Crain Hwy
    Upper Marlboro, MD 20772
    (301) 952-8809
    General Practice Attorneys, Attorneys, Legal Service Plans
    Access Legal Plan
    9200 Basil Ct Ste 550
    Upper Marlboro, MD 20774
    (301) 883-8789
    Attorneys, Legal Service Plans, Real Estate Buyer Brokers
    Brissette-Minus Kathy
    9200 Basil Ct
    Upper Marlboro, MD 20774
    (301) 883-8710
    Attorneys, Legal Service Plans
    Lawyers of Distinction
    14350 Marlborough Ln
    Upper Marlboro, MD 20772
    (301) 627-8700
    General Practice Attorneys, Attorneys
    Christopher Brannigan Law Ofc
    14760 Main St Ste 301
    Upper Marlboro, MD 20772
    (301) 780-8700
    General Practice Attorneys, Attorneys, Legal Service Plans
    Thomas F Duley
    5407 Water St
    Upper Marlboro, MD 20772
    (301) 627-8603
    General Practice Attorneys, Attorneys
    Spray & Jarnot Svc Inc
    5302 Water St # 201
    Upper Marlboro, MD 20772
    (301) 952-8600
    Attorneys Referral & Information Service, Attorneys
    Shelton Bill
    6231 Crain Hwy
    Upper Marlboro, MD 20772
    (301) 952-8555
    General Practice Attorneys, Attorneys
    Knight Manzi Brennan Shay Ham
    1440 Old Mill Rd
    Upper Marlboro, MD 20772
    (301) 952-8517
    General Practice Attorneys, Attorneys
    Ayo M. Stevens LLC
    5407 Water St
    Upper Marlboro, MD 20772
    (301) 952-8383
    Attorneys,  Family Law Attorneys,  Adoption Law Attorneys,  General Practice Attorneys,  Legal Servi
    Angelia Rowe Garner Law Office
    9200 Basil Ct Ste 301
    Upper Marlboro, MD 20774
    (301) 883-8340
    General Practice Attorneys, Attorneys, Legal Service Plans
    Washington Law, LLC
    5415 Water Street, Lower Level
    Upper Marlboro, MD 20772
    (301) 952-8005
    Child Custody Attorneys,  Bankruptcy Law Attorneys,  Divorce Attorneys,  Personal Injury Law Attorne
    Henry & Associates
    9701 Apollo Dr Ste 201
    Upper Marlboro, MD 20774
    (301) 925-7900
    Attorneys, Legal Service Plans
    Hamilton Linda M
    1101 Mercantile Ln # 296
    Upper Marlboro, MD 20774
    (301) 925-7833
    Attorneys, Legal Service Plans
    Solomon Law Ctr
    1401 Mercantile Ln
    Upper Marlboro, MD 20774
    (240) 582-7775
    General Practice Attorneys, Attorneys
    Moore Theresa L
    5407 Water St # 104
    Upper Marlboro, MD 20772
    (301) 780-7383
    General Practice Attorneys, Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US