Small business owners who are about to launch an online store, coffee shop, marketing firm, or other business operation often become so wrapped up in the process of getting the ball rolling with customers, employees, and products that they may overlook their choices when it comes to a corporate entity.
You may not think of your small business as a corporation, but forming an entity such as a limited liability company (LLC) offers liability protections to you as an individual in the event that your small business becomes responsible for another party’s damages. There are other advantages of forming an LLC, which an experienced Chicago business formation and growth attorney can help explain to you in full detail.
Forming a Limited Liability Company
LLCs have only been around since 1977, but they have become a popular business entity since then. A limited liability company acts as a barrier between you, the owner of your business, and the legal issues that may arise from your businesses dealings or conduct.
As an example, by forming an LLC, you yourself cannot be sued by a customer who walks into your brick and mortar building and gets injured in a slip and fall accident. Likewise, you cannot be held personally responsible for outstanding debts that your business incurs, and your home and other personal property remained protected from lenders or other parties.
All members of an LLC are sheltered under its umbrella of liability protection, and there is no limit to the number of members you can have in your LLC, according to the Internal Revenue Service. Members may include any person or entity with an ownership stake in the business, including:
- Business partners
- Other LLCs
- Other corporations
Other Benefits of an LLC
- Starting an LLC is quick and relatively simple.
- Starting an LLC is inexpensive.
- LLCs do not require members to hold meetings or have a board of directors, which are requirements for some other types of corporations.
- Running an LLC is straightforward and offers flexibility. For example, non-members can manage the business.
Why Is an Attorney Necessary to Form an LLC?
Because forming an LLC seems fairly simple and straightforward, many business owners choose to forego legal guidance during this process. However, there can be downfalls to this decision, and an experienced attorney can help you in a variety of ways, including determining whether an LLC or another type of entity is best suited to your business’s needs; ensuring that all federal, state, and municipal documents are completed properly and filed accordingly; and verifying the accuracy of your business’s bookkeeping and record keeping. For help setting up an LLC today, and to ensure that you are making the right choices when establishing a business entity, contact the dedicated DuPage County business law attorneys of Momkus, LLC today at 630-434-0400.