When it comes to entrepreneurship, one word that gets thrown around a lot is LLC. Limited Liability Company, it is a business entity type recognized by the US government. You can find it in anywhere you can go to learn about business. LLCs are popular due to their benefits to their members, both legal and financial.
Limited liability refers to the protections afforded by the entity type. When running a business there are many things to worry about. Debt can grow to the point that the business fails, legal problems can lead to being in hot water with litigious individuals. These are all threats one worries about when running a business.
With an LLC, business debt and legal liability is taken entirely by the company. Debts and lawsuits can only be against the company and never the individual members of the LLC. This makes it popular for people, even some going on to making 1 member LLCs rather than sole proprietorships for this reason. LLC protections are one of the reasons why they are one of the most common business types along side sole proprietorships.
There are many reasons why one could choose what type of entity their business is. However, the benefit of LLCs is that they allow for straightforward access to the market, not requiring capital and little more than filling fees, while also providing great protections from possible troubles in the future. So that is why you might consider opening an LLC. Call us today and we can get you started on the process, or even help register your business if you are going for another entity type.
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