3rd
Limited Liability Companies for Entrepreneurs
There are certain possible legal consequences that you need to be aware of if you are considering starting, or already have started, a small business. When you are a business owner, you are potentially exposing yourself to more legal liability than you had to deal with before you were your own boss.
One other issue that you have to think about when you are your own boss is taxes. Small business taxes are handled in a different way than personal taxes, so you have to be aware of what is going on with your company taxes. This is a great time to talk with an accountant.
While you probably can run your small business as a sole proprietor, this is not the best choice in most circumstances. There are many liability and tax reasons why you might not want to be a sole proprietor. Meeting with a professional regarding these matters is highly recommended.
So what can the average business owner do? Smart entrepreneurs form a business structure to protect themselves personally from liability and to take advantage of small business tax laws.
A common business entity, and probably the best solution for most business owners, is to LLC formation. Set up and run properly, a limited liability company (LLC) gives you liability protection personally. Also with an LLC, you have the ability to choose how you should be taxed.
LLC formation is very simple. You can pay a lawyer to set up your LLC for you, which is usually the more expensive choice. Or, you can use one of the less expensive Internet business creation companies for LLC formation. With prices starting at $115, there is no reason to not form a limited liability company for your small business.
Talk to a professional to see if an LLC is the right business structure for your particular situation. It is vital to make sure that you have your business structure set up properly to reduce personal liability and make the most of the tax benefits afforded to businesses.
