Before you can start your very own business, you are going to have to know a thing or two. For instance, you will want to have a thorough understanding of your market and customers–who is using your services? What are they looking for? Who is your competition? You will also probably be bringing your years of professional experience to the table. As you have gained a lot of knowledge during your time in the workforce, it only makes sense that you would rely on what you have learned to execute your business idea. You may find that there are also more practical matters of business ownership that you need to educate yourself on. Legal structures for businesses may fall under that category, particularly the in’s and out’s of starting a Limited Liability Company (LLC).
In your time working in the private sector–or even just as a consumer–you have probably frequently noticed that the letters “LLC” will follow the name of a business. This means that a Limited Liability Company has been established, which is different from, say, a sole proprietorship, general partnership, or C-Corporation. LLCs are a common choice of legal structure for business owners, and by gaining an understanding of what they are, you can better decide whether or not an LLC is right for your enterprise.
Getting to Know the Concept of Limited Liability
While you undoubtedly will set out to run your business with integrity and responsibility, sometimes unforeseen events happen. That can mean lawsuits or even bankruptcy. When you create an LLC, you will shield yourself and the other members with the protection of “limited liability”. To put it more simply, your personal assets cannot be applied to legal judgments against your business. Since that removes a great deal of risk from owning your own business, many entrepreneurs are enticed by LLCs at a conceptual level.
The Tax Benefits of Starting a Limited Liability Company
Taxes are, for better or worse, simply a part of life. As a business owner, the onus is on you to limit your tax liability as much as possible. One way in which you can do this is by structuring your business as an LLC. By going this route, you will be granted “flow-through” status by the Internal Revenue Service (IRS), which means profits made by your business will flow to the members of the LLC before they are taxed. As you can probably imagine, this is a sizable advantage to a business owner.
How to Form Your LLC Online
If you are ready to get your LLC up and running, Corporation Center can help. We have easy-to-read, fillable web forms for all of your business structure documentation needs. With just a small collection of details about yourself and your business, you can draft your Articles of Organization online in just moments. To learn more about the services we provide, browse our website, or contact one of our customer service agents by phone or email today.