Protect yourself by forming a limited liability company (LLC).
A limited liability company (LLC) is a legal entity that serves as a liability shield and a professional face for your business. There are three huge reasons why business owners set up using an LLC:
- Liability protection – make sure your personal assets are protected from exposure
- Tax advantages – avoid paying the IRS more than you have to with the right setup
- Professionalism – project an established, polished image for your business
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When you go through the process of forming an LLC with an attorney, you have to consider dozens of factors. A good small business attorney knows the right questions to ask to protect you and your business from trouble.
Example questions answered when forming an LLC:
- What will happen if a partner dies or becomes disabled?
- Who will have the right to buy or sell equity in the business?
- Can one partner ever be forced out by the others?
- What protections will keep the minority owners from being oppressed by the majority?
Avoid making these mistakes:
- Don’t operate a business without legal protection (such as an LLC)
- Don’t mess up the liability shield of your business with improper formation
- Don’t try to set up the legal side of the business yourself or with a cheap online service
Almost every business should be set up with a formal legal entity like a limited liability company. Make sure you are protected and set up by a professional. Talk to a small business attorney today.
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