Thursday, March 14, 2013

Is An LLC Right For My Business

There are a lot of people that are ditching the traditional route of making money, and looking for alternatives. One of the biggest alternatives that have been around for a great deal of time is the formation of a business. Whether you work online or you're working on building a brick and mortar store, you'll find yourself looking at different options to make things legal. Sure, you could go at it without forming a real company, but there are going to be issues that you will deal with on a legal level that could close you down fast. Consider the following things before you can fully understand whether forming an LLC is right for your needs as an entrepreneur.

The first step to understanding whether an LLC is right for your business is to fully be aware that you are going to start a business. Some people are OK with working without the banner, but that will mean you'll have to pay more taxes, and your personal finances can be affected if you get in legal trouble of any kind. If you're dead set on starting a legitimate company, than that could be the first sign that this option is right for you.

As mentioned above, when you form this type of company you will be thrilled to know that your assets are going to be protected. What that means it that you are not going to be personally responsible for any debts that you incur as a business, and creditors will have to go at your business and not any personal money you might have such as savings, a home, or even a car. When you're working alone, you are going to have to defend yourself tooth & nail to keep your assets.

When it comes to forming this structured option, you will find that your taxes aren't going to be the same. You won't have to pay at the business level at all, and that means that you can get your income and losses passed through and your regular personal tax statements will apply. All the taxes that you will have to pay or report will come down to the personal level and will not go through a business funnel, which is a great thing overall.

The number one thing that you will want to consider when starting this company is the sheer fact that you will have authority in regards to whatever business you're in. No matter what you do, no matter where you are in your career path, you will find that those that have a full fledged LLC have a certain authority that others do not. Your competitors that do not form a company and are freelancing will start to look like amateurs and hobbyists compared to you, so you'll inherit a great deal of work that you might not had previously.

The above issues are important to consider w hen you start to question whether or not an LLC is right for you. Take your time considering your options and make sure that you're fully aware of what you're up against when forming such a company. You'll find that the benefits are quite good overall.

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