One of the great things about starting your own business is that it allows you to see your entrepreneurial vision come to life. Whether you are interested in creating a small, one-person operation, or a sprawling corporate titan, you can control your own professional destiny. Of course, before you can truly witness the fruits of your labor, there is a lot of groundwork that will need to be set in place. Typically, it is helpful to start by creating a solid and comprehensive business plan. This allows you to outline your overhead costs and identify your primary customers or clients. Once you have a plan in place, you can forge ahead with leasing office space or setting up a retail location. You can also hire staff to assist you in getting your business off the ground. Another item in the planning process that you will want to consider early on is how you will choose to legally structure your business. If you are thinking about making use of the benefits that come with a limited liability partnership (LLP), you will be happy to know that you can use our easy-to-fill web forms to complete an LLP application online.
Beyond calling for a lot of hard work, including the sacrifice of your nights and weekends, entrepreneurship comes with a fair amount of risk. The simple truth is that not every business makes it, and it is up to you to figure out the ways in which you can best avoid potential pitfalls. One way in which some opt to do this is by forming a partnership. By working with one or more partners, you can put your heads together and lean on one another’s expertise to get your business up and running. You can, of course, also share some of the investment costs that come with launching a business. There are various modes of partnerships that you can choose to create, depending on your state, the most basic of which is a general partnership (GP). A general partnership occurs any time two or more individuals decide to go into business together, and it can be a rather informal relationship, or you can choose to solidify it by drafting a profit-sharing agreement. In some states, you also have the option of forming a limited liability partnership, which allows you to retain certain liability and tax incentives. Read on to learn more about this structure, as well as how you can fill out an LLP application online.
Is Completing an LLP Application Online the Right Move for You?
If you have even a vague familiarity with the workings of the business world, you have probably come across a limited liability company (LLC) once or twice. This is not particularly surprising, as LLCs are a rather common structure among business owners, from both the novice to the seasoned alike. LLCs offer a relative ease of setup, along with a number of valuable incentives. An LLP is rather similar in its concept, with some notable differences. For instance, in an LLC, the members (owners) are allowed the protection that comes with limited liability. This means that in the event a business faces an expensive lawsuit, or must file for bankruptcy, its owners can shield their personal assets. To put it another way, you and your partners do not need to worry about losing your personal savings should your business go belly-up.
In an LLP, however, it is possible for one or more partners to be found liable, should they be shown to have been negligent or committed malpractice. This sort of targeted accountability can make a lot of sense for, say, licensed professionals such as doctors, lawyers, accountants, or architects. In fact, in some states such as California and Nevada, licensed professionals are only allowed to form LLPs.
When you create an LLP, you can also enjoy the benefits that come with a “flow-through” designation from the Internal Revenue Service (IRS). This means that your business can pass deductions, credits, gains, and losses directly to the partners, which can potentially help your LLP avoid paying taxes on the profits it directly generates.
Get Your LLP Started Today!
To start your LLP, you will first want to make sure that this structure is offered in your state. From there, you will then want to select a business name that is not already on your state’s registry. You will also typically need to assign a registered agent to navigate all legal correspondence on behalf of your business. From there, you can create your articles of organization, which will then need to be submitted to your Secretary of State’s office for processing.
At Corporation Center, we have all of the business process documents that you need on one convenient website. To learn more, take a moment or two to explore our offerings, or contact one of our customer service agents by email or phone with any questions you may have.