Creating an LLC for Your Business
Posted by Writer on Mar 4, 2009 in Small Business • No commentsIf you have your own small business, or are considering starting one, you need to think of the liability implications of doing so. As a small business owner, you are potentially exposing yourself to much greater legal liability than you had to deal with before you owned a small business.
One other issue that you have to consider when you own a business is taxes. Business taxes are handled much differently than personal taxes, so you have to be aware of what is happening with your company taxes. Consulting with an accountant is a good idea when it comes to business taxes.
Operating as a sole proprietor is always an option, though it is not usually the best choice. There are many liability and tax reasons why you should not operate as a sole proprietor. Meeting with a professional regarding these issues is recommended.
So what should the average entrepreneur do? Smart business owners form some sort of business structure to shield themselves personally from liability and to take advantage of corporate tax laws.
A very common business entity, and probably the best solution for most business owners, is to think about starting a LLC. A limited liability company, or LLC gives you personal liability protection, assuming it is set up correctly and you completely separate your business and personal goings on. Also with an LLC, you have the ability to can pick how taxes are handled.
Setting up an LLC is incredibly easy. Generally, the more expensive option is paying a lawyer to set up your LLC. Or, you can use a less expensive online business formation companies for form LLC. With prices starting at $115, there is no excuse to not form a limited liability company for your business.
Always meet with a professional to ensure forming an LLC is the right structure for your business. It is vital to make sure that you have your business structure set up correctly to limit personal liability and to take advantage of the tax benefits given to companies.
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