When Should Your Business Become an LLC?
There is a lot to consider when you decide to become an entrepreneur and start your own small business. One thing that you should think about when beginning this journey is how to protect your personal assets. You take on a considerable amount of personal risk when starting a business, but there is a way to help mitigate that risk.
Valentino DiGiorgio is an entrepreneur and community conscious philanthropist with a passion for empowering individuals and families in need. Dedicated to creating opportunities, he shares his advice for beginner small business owners.
LLC stands for ‘Limited Liability Company’, and it is the most basic business entity that someone who owns a business can form. Essentially, an LLC legally separates you and your business. Once an LLC is formed, it owns the business, and thus protects all of your personal assets should the business go under, a lawsuit is filed, or something else goes wrong.
So, when should you consider forming an LLC? It is a good idea to get one right at the beginning. An LLC will give your business credibility, has certain tax advantages, and is easy to set up. Each state has its own requirements, but you can do it yourself without help from a lawyer for about $100 to $200.