Business Entity Definition

Hello, this is your LLC Guru here.  Welcome to our site where we help regular people get their own LLC’s quickly, inexpensively, and with confidence!  If you need an LLC or are thinking about getting one, you have come to the right place.  Here at YourLLCGuru.com, we’ll help you get your own LLC in about 10 minutes!

Before we start I would like to mention that this is in no way legal or tax advice.

So a business entity is an organization one or more people form to conduct business activities.  Now, many people think that to have a business entity you must actually file for a corporation or an LLC.  This is not necessarily so because if you do not formally file an LLC or a corporation or similar, then you are the business entity – you the individual.  That is not ideal at all because if the business gets sued, then you are getting sued.  If the business is found liable for something, then you personally are found liable for it. This is why you need to actually choose to form a true business entity separate from yourself. 

If you choose to protect yourself wisely by forming something like an LLC, which is the easiest and most sensible solution in most cases, then you are no longer the business.  The business is a separate business entity – the LLC itself.  Now you are in a much better position. Now if the business gets sued, it is the business getting sued and not you personally. If the business is found liable for something, then it is the business that is liable, not you.  That may not sound like much but it is an enormous protection for you and your family. 

So, while it may seem complicated and intimidating to form your own, “business entity”, the fact is that basically if you do not take the time to protect yourself by forming something such as an LLC, that does not mean you do not have an entity, it just means that you have a terrible entity because you are the entity and you do not want that.  A well-thought-out business entity in the form of an LLC is a separate thing from you that isolates you from personal responsibility concerning your business.  It is something that everyone who is in business should have. Without it, you are leaving yourself and your family at extreme risk.  

In my next post we will unpack more details around LLC’s.  If you are considering an LLC for yourself, please check out some of my other posts here on this site or watch our videos on YouTube so you can learn more helpful information about LLC’s and how to use them to protect yourself in business.