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LLC Incorporation for the Entrepreneur
By getAcareer | November 19, 2008
If you have your own small business, or are considering starting one, you need to think of the legal implications of doing so. There are potentially greater legal liabilities you are subjected to as your own boss that you did not have to worry about before you owned a business.
One other issue that you have to think about when you own a business is taxes. Small business taxes are handled differently than personal taxes, so you have to know of what is going on with your business taxes. Of course, this is where an accountant can come in real handy.
Operating your business as a sole proprietor is always an option, though in most cases it is not the best choice. There are huge 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 entrepreneur do? Wise business owners form some sort of business entity to shield themselves from personal liability and to take advantage of corporate tax laws.
A common business structure, and probably the best solution for most business owners, is to think about starting an LLC. A limited liability company (LLC) can give you liability protection personally, assuming it is set up correctly and you totally separate your business and personal finances. And with an LLC, you have the ability to choose how you should be taxed.
Forming an LLC is incredibly easy. You can hire a lawyer to set up your LLC for you, but this is generally the more expensive option. Or, you can use one of the less expensive online business creation services for LLC formation. With prices starting at $115, there is no excuse to not form a limited liability company for your small business.
Talk to a professional to see if limited liability company LLC is the right structure for your particular situation. The least you should do is take some action to ensure that your business is separated from you, to limit your potential personal liability and take advantage of the tax benefits afforded to small businesses.
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