Why the Sole Proprietor Should Form an LLC Business
If your business interacts with anyone, whether it be customers, vendors, employees, service providers, you should not be operating your business a sole proprietorship. In today’s litigious society, operating a sole proprietor business is creating a bright red target for lawsuits. Form an LLC for your business and you will automatically reduce your risk.
For some reason, the United States is notorious for lawsuits. The US has always been a capitalistic country which means many people here are thinking about the best ways to make money. Lawsuits are almost always about money. The legal system was created to protect people but it also creates a system to extract money from others.
A successful business is a prime target for a lawsuit because predators and their attorneys know there is money involved. When you operate as a sole proprietor, your business is inextricably part of yourself. So, if your business gets sued, you personally are being sued.
When you personally are being sued, all of your assets are at risk. Let me say this another way. It is not just your business assets at risk but your home, your savings, your car- everything.
The limited liability company was created as a way to encourage business ownership and business activity. When you form an LLC, you are creating a separate person to be your business. It is a separate legal entity from you the owner. So, if an LLC business becomes liable for an obligation, the owners of the LLC are not automatically personally liable as they would be if the business were a sole proprietorship business.
This layer of protection is so valuable especially in the US. Not only does it protect you from legitimate business obligations, but it makes your business less of a target for frivolous lawsuits. A sole proprietorship business is a bright red target for the many predatory attorneys. They think . . . Hey, this guy runs a successful sole proprietor business. If sued, even if we do not have a strong case, he will pay us something to settle because everything he owns will be at risk.
When you form an LLC, you not only get this layer of protection, but you also automatically get a more professional image. Customers prefer to do business with legal entities such as an LLC over a sole proprietorship. Having a limited liability company is a sign of business legitimacy which goes a long way in the small business world.
If you already run a sole proprietorship, it is never too late to form an LLC to operate your business moving forward. While a limited liability company can only provide the protection moving forward, the sooner you have this protection, the better off you and your business will be.
Is it Safe to Incorporate Yourself Online As an LLC?
Many people have questions as to whether it is really safe to form a corporation or Limited Liability Company (LLC) over the internet, rather than heading to their state’s secretary of state office in person.
5 Good Reasons to Incorporate Your Business Online
You’ve decided to incorporate your business, but aren’t sure how to proceed. Incorporation is a process that involves lots of decision-making, paperwork, and legal processes. Thankfully, you don’t have to go far to learn the ins and outs of incorporation. You can now incorporate online with helpful services that are just a click away. Here are five good reasons to incorporate online.
1. Never Leave the Home or Office
One reason to incorporate online is you can get all the help you need from the comfort of your own office or home. With online incorporation, you’ll have all the facts about corporations at your fingertips. The incorporation services provided online usually come from those who are experienced and can provide you with the paperwork and guidance needed to ease the process. You’ll save time and many headaches by using an online incorporation service and you won’t have to run from one place to another trying to determine what is needed.
2. State-by-State Incorporation
No matter what state you plan to incorporate in, you can incorporate online within minutes. Many online services are equipped to handle incorporation paperwork in multiple states. The services can provide you with detailed information about the state such as the fees to incorporate a business, total cost for incorporating, how long the process will take, and the steps or paperwork required to incorporate in that particular state.
3. Incorporate Quickly
Some online services may offer expedited incorporation services. This service can be useful if you need to incorporate your business in a hurry. Expedited service often costs a little more, but can be well worth it if you need it fast. By choosing this option, your business might be incorporated within 10 days or less.
4. Know all the Facts
When you incorporate online, you can know all the facts about incorporation before deciding to take that final step. You can take time from your home or office PC to read about forming a corporation, the requirements involved, and the pros and cons of incorporation. This will enable you to make an informed decision and determine the proper direction for your business.
You can also compare different forms of business, such as Corporation, S Corporation, forming an LLC (Limited-Liability Company), sole proprietorship, and partnership. For instance, to form an LLC and a corporation is similar in some ways, but very different in others. LLC formation should be carefully compared to incorporation before making a decision.
5. Save Money
To incorporate online is often more affordable than hiring an agent or attorney to do the paperwork for you. Online services are able to operate with minimal expenses by providing Web forms and information via the website. These savings are passed on to you and enable you to incorporate your business with a minimal investment.
These are only a few reasons to incorporate online, but there are many other benefits. Discover all that incorporation can offer for your business today, and watch your business soar to new heights!