If you have been in business for a while, you know how important it is to choose the right structure for your venture.. Your goal should be to think long-term, and at the same time protect yourself against lawsuits and other liabilities. There are many business-structures to choose from, but some come more legal requirements while others provide you with less flexibility to grow your business.
Limited liability companies are great for small business and start-ups. They are very easy to form, and you won’t have to worry about too much paperwork (depending on your state). In some states, you don’t even have to file an annual report. LLC protects your personal assets. Whether you are a blogger or own a small shop, you could always get into financial trouble. Wouldn’t it be nice if your personal assets were off-limits? As long as you keep your LLC compliant, you won’t have to worry about losing your personal assets if you are sued.
Forming your LLC allows you to register and protect your business name as well. That option is not available to a sole proprietor. You can also have unlimited members, which gives you the flexibility to expand your business when you need to. Best of all, the owners don’t have to be U.S. citizens or even residents.
A limited liability company does not have too much paperwork to fill out. You always want to check out with your state and local offices to find out if there are any requirements. A few cities require you to get a license to operate. But that’s a one-time affair and won’t cost you too much. With your limited liability company, you won’t have to hold meetings or report minutes. And if you prefer, you can report your profits and losses on your personal tax return.
Forming a limited liability corporation is not right for everyone. If you don’t own a business, there is no reason to hurry. There will be fees, and you need to state compliant with your state’s and city’s laws. If you are in very early stages, you may want to hold off. But if you have a clear business plan and ready to take your business to the next level, a limited liability entity is a good start.