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 Charlestown, MD

Benefits of a Limited Liability Company (LLC) in Charlestown, 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 Charlestown, MD
    Callegary & Steedman
    24 Office St
    Bel Air, MD 21014
    (410) 399-9997
    Attorneys, Legal Service Plans
    Kahoe Robert F Jr
    9 S Hickory Ave
    Bel Air, MD 21014
    (410) 879-9906
    Attorneys, Legal Service Plans
    Plum Jeffrey J
    108 N Bond St
    Bel Air, MD 21014
    (410) 879-9898
    General Practice Attorneys, Attorneys, Legal Service Plans
    Modell David
    7700 Old Georgetown Rd Ste 500
    Bethesda, MD 20814
    (301) 634-9820
    Attorneys
    Brooks David
    4405 E West Hwy Ste 601
    Bethesda, MD 20814
    (301) 654-9780
    Attorneys, General Practice Attorneys
    Kennedy & Baris LLP
    4330 E West Hwy Ste 301
    Bethesda, MD 20814
    (301) 263-9734
    Attorneys Referral & Information Service, Legal Service Plans, Attorneys
    Ruben & Aronson LLP
    4800 Montgomery Ln Ste 150
    Bethesda, MD 20814
    (301) 901-9696
    Attorneys, Legal Service Plans
    Robin Dennis R
    2131 Defense Hwy Ste 1
    Crofton, MD 21114
    (410) 721-9680
    Attorneys
    Estates
    7960 Old Georgetown Rd
    Bethesda, MD 20814
    (301) 913-9660
    Estate Planning Attorneys, Attorneys
    Scull David L
    7960 Old Georgetown Rd Ste 8C
    Bethesda, MD 20814
    (301) 913-9660
    General Practice Attorneys, Attorneys
    Jonathan Drumgoole, NCC,LCPC
    139 N Main St
    Bel Air, MD 21014
    (443) 955-9648
    Family Law Attorneys, Attorneys, Divorce Assistance
    Obecney, Carlton T - Selzer Gurvitch Rabin Obecny
    4416 E West Hwy Ste 400
    Bethesda, MD 20814
    (301) 986-9600
    Litigation & Tort Attorneys, Attorneys
    Selig Barry F
    4300 Montgomery Ave # 104B
    Bethesda, MD 20814
    (301) 986-9575
    General Practice Attorneys, Attorneys, Legal Service Plans
    Ezeala Jude C
    5521 Harford Rd
    Baltimore, MD 21214
    (410) 922-9456
    Attorneys
    Hillman Arthur
    3 Bethesda Metro Ctr # 530
    Bethesda, MD 20814
    (301) 718-9447
    Attorneys
    Sherman Arnold B
    4800 Hampden Ln # 7th
    Bethesda, MD 20814
    (301) 951-9377
    Attorneys
    Koch Daniel S
    4800 Hampden Ln
    Bethesda, MD 20814
    (301) 951-9371
    General Practice Attorneys, Attorneys, Title Companies
    Eisler Alan D
    4800 Hampden Ln
    Bethesda, MD 20814
    (301) 951-9357
    General Practice Attorneys, Attorneys
    Dumais Kathleen M
    4800 Hampden Ln # 700
    Bethesda, MD 20814
    (301) 951-9353
    General Practice Attorneys, Attorneys
    Hamayoun Aresh
    4800 Hampden Ln
    Bethesda, MD 20814
    (301) 951-9343
    Attorneys, Legal Service Plans
    Cohn Debra A
    4800 Hampden Ln
    Bethesda, MD 20814
    (301) 951-9341
    Attorneys, Legal Service Plans
    Fox Diane A
    4800 Hampden Ln # 700
    Bethesda, MD 20814
    (301) 951-9336
    General Practice Attorneys, Attorneys
    Janowich John W
    108 N Bond St
    Bel Air, MD 21014
    (410) 836-9329
    Attorneys, Legal Service Plans
    Eastman Hope B
    4800 Hampden Ln # 700
    Bethesda, MD 20814
    (301) 951-9326
    Attorneys, Legal Service Plans
    12Law.com   |  NASHVILLE, TN USA   |  CONTACT US