Limited Liability Companies and Estate Planning in Massachusetts

Boston LLC Formation Attorneys

The limited liability company offers many advantages over other business entities. In addition to favorable tax treatment and liability protection, an LLC has benefits for estate planning and succession. While there are many upsides to an LLC, the entity and the operating agreement must be carefully created to maximize the advantages and limit the potential problems.

The lawyers of Cushing & Dolan, P.C., provide sophisticated business planning counsel to entrepreneurs, investors and families in Massachusetts and New Hampshire. To explore the merits of forming a limited liability company, arrange a consultation today.

Estate Planning Through a Limited Liability Company

As an estate planning and tax planning firm, we help our business clients consider the income tax, estate tax and succession ramifications of all transactions. An LLC addresses those goals among its many benefits:

  • A limited liability shield - A limited liability company offers protection to all members, unlike a limited partnership in which one or more general partners are liable for the entire business.
  • Income tax pass-through - An LLC is not ordinarily subject to double taxation, unlike a subchapter C corporation. The corporate taxes are assessed to the individuals, according to their share of allocated profits and losses.
  • Flexibility - A trust can be a member of a limited liability company, providing additional asset protection and tax advantages.
  • Succession - Shares of an LLC can be passed to heirs over time through gifting strategies, alleviating the tax burden of inheriting those assets all at once.
  • Estate tax discounts - Because interests of an LLC are generally less marketable than the underlying assets held by the LLC, their value is discounted as much as 25 to 40 percent for state and federal estate tax purposes.

For a more detailed discussion of limited liability companies and estate planning in Massachusetts, call Cushing & Dolan at 617-523-1555 or contact us online. We have eight offices in the Greater Boston area.