When it comes to building a successful business, there are many opportunities available if you make the right decisions and have a solid plan for growth. Failing to do this can cause your business to stagnate or even regress. As your business develops, a key thing to consider is your business structure. If you started as a sole proprietorship, as many small businesses do, it might be time to consider re-organization into a Limited Liability Company (alternately known as a Limited Liability Corporation), or LLC for short.
The following post explains the basics of an LLC. Note that you still enjoy many of the benefits of sole proprietorship under this classification.
What is LLC Designation and Does Your Company Need It?
Each kind of business structure has advantages and disadvantages. A sole proprietorship gives owners full control though they are responsible for all liabilities, while partnerships limit control and partners are jointly responsible for all liabilities. Corporations give some control and limit losses to the size of the investment, though the best business structures of all may be an LLC. A Limited Liability Company (LLC) is a business entity that combines the structures of sole proprietorships, partnerships, and corporations. There may be one or more owners who are known as members. Like the partnership, if one member dies or is bankrupt, the LLC ends. Some limited liability companies are organized as perpetual entities, and memberships are transferred or sold. To help you understand this business organization a little better, more information is below. Read more at Small Biz Daily…
As you see, acquiring LLC status can open up new opportunities for growth that may not be possible with a sole proprietorship.
It always help to perform a cost-benefit analysis when it comes to any business decision. If you need to compare the pros and cons of creating an LLC, the following post offers some vital information:
Pros of an LLC
Protecting Your Personal Assets
The primary benefit of setting up any formal business entity is that they can protect your personal assets from the business’s debts and liabilities, when used correctly. Generally, an LLC’s owners (also known as members) are not held personally liable for any company debts that they have not personally guaranteed. This means that in the event the business is sued or goes bankrupt, the owner’s personal assets such as houses, savings accounts, and cars are typically protected. Read more at Kenji app…
If there’s one situation you want to avoid above all others, it’s having your personal property seized to settle debts arising from your business’s activities. An LLC protects you from these repercussions, which is especially important if you have a family.
So, how do you go about setting up an LLC? What are the legal requirements? The following post outlines the process for North Carolina residents:
How to Form an LLC in North Carolina
A North Carolina Limited Liability Company (LLC) is a legal structure used to protect your personal assets (home, car, bank account) in the event your business is sued.
An LLC can be used to operate a business, or an LLC can be used to hold assets (such as real estate, vehicles, boats, or aircraft).
Forming an LLC in North Carolina is simple. Search your North Carolina LLC name in the state database, designate your Registered Agent, file your LLC Articles of Organization and pay the state filing fee ($125). Read more at LLC University…
While you can create an LLC on your own, it is wise to have legal assistance with the process. This will help you be clear about the legal requirements, your obligations as an owner and, first things first, determing whether an LLC designation is even the best fit for your business. In Charlotte, the attorney to call for business law matters is Jonathan Meek of Meek Law Firm. He can provide your new business with the legal guidance and representation it needs to be a success. For more information, call (704) 848-6335 or use the contact form on the website to schedule a consultation appointment.