A Limited Liability Company is a kind of business entity formed under the laws of several states but may serve as more than one business. On the surface, it looks like a company, but it is a separate legal entity. When it is formed, it is not technically a “C Corporation” like most other businesses.
In a word, a limited liability company, or LLC, is a hybrid of a corporation and a partnership. It is a form of business organization that combines limited liability with the advantages of a partnership. For those intrigued to learn how to start an LLC, the best way would be to gather as much as information possible and initially start slow. Once you have mastered all the information possible and gained maximum experience, you would automatically expand to greater heights. In the eyes of the law, an LLC follows the same rules as a corporation. However, the owners of an LLC are not limited to the protections that a corporation provides under its charter. The main difference between a corporation and an LLC is that the liability of the owner is limited, i.e., the owner of a business is not personally liable for the debts of the business.
In the world of business, an LLC is a corporation that is owned by a group of people under a single “legal” name. Typically, an LLC is formed to protect the interests of owners from the liability and responsibilities of the corporation and to avoid the challenges and costs associated with running a corporation. However, an LLC can also hold real estate and/or other personal property and manage and protect other types of personal or business assets.
While it may sound like a scary, dark world where things can go wrong, it’s a much more straightforward and pleasant world when you’re a Limited Liability Company (LLC). When you’re an LLC, you’ve secured in a way that a corporation is not. A corporation is a business that is a legal entity separate from its owners, whereas an LLC is a business owned by its owners. It’s an entity that is owned by the owner.
Our country was founded on the principles of personal freedom, including the ability to pursue your profession without the need of a large corporation behind you. That is why freelancers can build their networks, market themselves, and even grow their businesses much faster than if they were working in a traditional environment.
From the number of entrepreneurs out there to the number of business owners, more people own their businesses than ever before. With this increase, however, also comes the need to know your legal options. Say, for instance, protecting your business properties (learn more here), be it intellectual assets or wrongful business trade misappropriation, you need to have a reputed legal professional by your side when you establish your own business. While there are many benefits to running your own business, there are also drawbacks. If you are just starting, here are three reasons why you should establish your business as an LLC.
1. With the number of businesses that have started online, it seems that one of the things you should consider doing is opening a business bank account. This is something that many small businesses end up doing themselves, or hiring an accountant to do. If you’re a freelancer and want to start a business, you’re probably familiar with the challenges of finding a bank to work with on your business accounts. Being your banker means you’ll need to set up a business bank account to receive your checks and process your payroll.
To be a successful freelancer, you need a bank account. Unless you’re a solo musician, a musician in a band, independent musician, independent artist, and so forth, and your primary source of income is from your music, and you need a bank account for all your cash flow. You may even need an LLC to do so.
2. They allow business owners to buy and sell real estate, develop and manage business interests and investments, and reduce tax liability by forming a separate legal entity. But to accomplish these objectives, the business and financial activities of the business and the personal and financial activities of the owner need to be separated. An LLC can also do that.
3. LLC can improve your professional image by helping you with some of your business needs. It can offer advice on improving your business skills, dealing with problems, dealing with your insurance company, setting up your business, setting your business documents, etc. LLC can also help you increase your productivity.