Starting an LLC as an Entrepreneur
Written on January 4, 2009 – 5:14 pm | by Guru
There are certain possible legal consequences that you need to consider if you are considering starting, or already have started, a business. When you are a small business owner, you are potentially subjecting yourself to more legal liability than you had before you owned a small business.
One other issue that you have to consider when you are an entrepreneur is taxes. Business taxes are handled differently than personal taxes, so you have to be aware of what is happening with your company taxes. Consulting with an accountant is a good idea when it comes to business taxes.
While you probably can run your business as a sole proprietor, this is not the best choice in most cases. There are many liability and tax reasons why you might not want to be a sole proprietor. Getting professional advice in these issues is recommended.
So what should the average business owner do? Wise business owners form a business structure to protect themselves from personal liability and to take advantage of small business tax laws.
A very common business entity, and probably the best choice for most business owners, is to consider creating a LLC. A limited liability company (LLC) can give you personal liability protection, assuming it is set up correctly and you totally separate your business and personal goings on. And with an LLC, you can choose how you should be taxed.
Forming an LLC is incredibly simple. Generally, the more expensive option is paying a lawyer to form your limited liability company. Or, you can use one of the less expensive Internet business creation services for LLC incorporation. There is no reason to not form an LLC with prices as low as $115.
Always meet with a professional to ensure LLC incorporation is the right structure for your company. The least you should do is take some action to ensure that your company is separated from you, so you reduce your potential personal liability and take advantage of the tax benefits of owning your own business.
Tags: create an llc, form an llc, forming an llc
