Creating a LLC as an Entrepreneur
If you have a business, or are thinking of starting one, you need to consider the liability issues of doing so. When you are a business owner, you are possibly exposing yourself to much greater legal liability than you had before you owned a business.
One other issue that you have to consider when you are your own boss is taxes. Business taxes are handled in a different way than personal taxes, so you have to know of what is happening with your business taxes. This is a great time to talk with an accountant.
While you most likely can operate your business as a sole proprietor, this is not the best choice in most cases. There are several liability and tax reasons why you should not be a sole proprietor. Seeking professional advice about these issues is highly recommended.
So what should the average business owner do? Smart entrepreneurs create some sort of business structure to protect themselves from personal liability and to take advantage of small business tax laws.
A very common business structure, and most likely the best choice for most small business owners, is to think about start a LLC. Set up and run properly, a limited liability company, or LLC can give you liability protection personally. Also with an LLC, you can can pick how taxes are handled.
Setting up an LLC is incredibly easy. Generally, the more expensive option is paying a lawyer to form your LLC. Another option is to use a reputable online business formation services for LLC form. With prices as low as $115, there is really no excuse to not form an LLC for your business.
Consult with a professional to see if LLC formation is the right business structure for your business. The least you should do is take some action to ensure that your business is separated from you, so you limit your potential personal liability and take advantage of the tax benefits of owning your own business.