At What Point Do I Need an LLC? – that’s the topic of today’s post!
Hello, this is your LLC Guru, welcome to our site. We help regular people get their own LLC’s quickly, inexpensively and with confidence! If you need an LLC then you are in the right place as we can help you get your own LLC in about 10 minutes!
A Limited Liability Company, LLC for short, is a U.S. business entity that allows its owners protection from personal liability from business claims, liabilities and debts.
Before we go any deeper, I want to make it clear that I am in no way giving legal or tax advice here!
Now you may be wondering if you should or when you should file for an LLC if you are thinking about running a business. Our recommendation is that anyone starting or currently running a business as a sole proprietor should form an LLC asap. Most any type of business is eligible to form a regular LLC but a few States have some stipulations on this and require a special LLC called a professional LLC in certain instances (examples include doctors, lawyers, accountants, architects and a few others). For our intent in this post, we will only be discussing a regular LLC as that is the most common.
LLC’s provide several major benefits to their owners so the sooner you get your business set up as an LLC, the better. Simply put, if you do ANY type of business at all you need protection! If you are just starting a business then it is recommended you start your LLC before your first interaction with the public. Before you open a bank account for the business is best. So early is our answer. Before you can possibly incur your first liability.
So, while it is true you do not need an LLC to start a business, the benefits of having your company set up as an LLC are tremendous and we highly recommend it. In fact, we think you’d be negligent towards yourself and your family to not protect yourself! So our answer to at what point do I need an LLC is “as soon as you’re sure you’re going into business – before you do anything!”
In my next post, we will unpack more details about LLC’s. If you are considering an LLC, please check out some of my other posts or our videos on YouTube so you can learn more helpful information about LLC’s and how to use them to protect yourself in business.