If you’re a business owner, but you’re concerned about how best to manage your finances and protect your personal assets, then you might have come across the suggestion to open an LLC. But what are LLCs, and why are they beneficial? In this article, we’ll be exploring how business owners across the states are using LLCs to keep their business and personal lives separate.
What Is an LLC, and How Are They Used?
A limited liability company, or LLC, is a business structure designed to protect company owners from business liabilities. Because of this, business owners can use LLCs to primarily keep their personal matters separate from their business interests and avoid any personal legal complications if their business is sued or enters financial difficulty. Across the states, LLCs are used by both small and large business owners to secure their future in a legally compliant way.
The Benefits of LLCs for Business Owners
When it comes to keeping business and personal matters separate, business owners around the globe are doing this thanks to the many benefits of LLCs that allow them to prioritize the business side of life. These benefits are vast, and if you’re considering an LLC yourself, then read on to discover some of the best reasons to get started.
Easy To Form
Unlike corporations, businesses that are formed as an LLC are far less expensive and much simpler to create. Often, the price you’ll pay to form an LLC is less than $1000, and you’d be surprised at how little paperwork you need to complete compared to a more traditional business. You can find some great online templates for outlining your organization structure and operating agreement, so even this stage of the process doesn’t need to feel daunting.
Suitable For Individuals
One of the biggest reasons for the popularity of LLCs for business owners is that they are a suitable set up for individuals who want to run as a single-member organization. With LLCs, you’ll benefit from personal asset protection as well as much greater flexibility around taxation. While you should always take your state rules into account, an LLC is a great choice if you’re an individual business owner.
Personal Liability Protection
Obviously, the most popular reason for forming an LLC is that business owners can separate their personal assets from the business itself. This means that if your business runs into financial or legal difficulty, your own assets like your savings, home and car will be protected. There are of course limitations to this, which should be thoroughly researched depending on your state, but generally, you can rest easy knowing your home and business matters are not linked to one another.
On top of these key benefits, you’ll find that your LLC will also offer other benefits including greater management flexibility, so there’s no reason why this setup shouldn’t work for your business.
How to Set Up an LLC
Have you decided that an LLC might work for you, or been inspired by others’ use of these helpful business structures? Then setting up your own LLC is easy. All you need to do is decide on a name, find out the requirements for your individual state and get started. Once your LLC is established, take some time to find the very best insurance for an LLC – this will ensure that you’re protected no matter what.
There’s a reason why LLCs are so popular among businesses in the states – they offer incredible protection for individuals looking to run as sole owners. If you’re considering an LLC, make sure that you have appropriate insurance and you’ll be up and running in no time.