Should You Form An LLC?
There are many legal entities to choose from when forming a new business. One popular choices is the limited liability company, or LLC. At MT Law LLC we can help you understand what an LLC is, what it does and whether this is the best option for your business. Our main office is in Lexington, Massachusetts, and we have additional locations in New York, California and China.
What Is An LLC?
A limited liability company is a simple way to structure your business so that your personal assets are protected in the event that your business were to get sued. One or more individuals can own an LLC together and would be referred to as members of the LLC. Under the umbrella of an LLC you are able to do business, hold a tax I.D. number and even open a checking account.
What Are The Benefits Of An LLC?
There are many benefits to declaring your company as a limited liability company. These benefits include:
- Owners of an LLC have the limited liability protection of a corporation.
- Limited liability companies can select varying forms of distribution of profits. Unlike a common partnership where the split is 50-50, LLCs have more flexibility.
- LLC business structure requires no corporate minutes or resolutions and is easier to operate.
- All your business losses, profits and expenses flow through the company to the individual members.
- You can avoid the double taxation of paying corporate tax and individual tax, but circumstances can favor a corporate tax structure.
- Business owners with plans to take their company public or issue employee shares in the future may be best served by choosing a corporate business structure.
For More Information About LLCs
If you are starting a business, contact our attorneys today. Our attorneys have experience to help you understand what business formation option is best for you. With both local and international business law experience and knowledge of several areas of law, we are equipped to help you get your business going. Call us at 800-345-1899 to set up a consultation.