Why You Need to Apply for an LLC
With: Mariana Minaya, Associate attorney, McMillan Metro, P.C
So you’ve made the decision to launch your business – congratulations! Starting a business can be exciting and scary at the same time as there are many things to consider. One of the first things that you want to do is apply for an LLC (A Limited Liability Company), a legal entity created by a state to protect business owners like you from personal liability — “aka protecting your personal assets in case your business is sued.”
In addition to protecting yourself from personal liability, there are many other advantages to forming an LLC, such as
- As an LLC, you are ensuring that your business and personal assets are completely separate.
- An LLC is not taxed as an entity which allows you to report your business income on your personal tax returns
How to Get Started
Forming an LLC is relatively easy. Begin the process by visiting the US Small Business Administration. The website provides a wealth of information on how to get started. You could also go to your state commission, for example in Virginia you can visit https://www.scc.virginia.gov/ .Once you’ve done your research, consider taking the following steps:
- Choose a name and ensure that it is available
- Make sure you have enough of a personal investment to cover your debts
- Identify a registered agent in your state (someone who is physically present there)
- Decide who will control the business
- Hire an attorney who can help you along the way
Interested in getting more insight? Join me on April 13th at WeWork Crystal City for a one-hour training on everything you need to know about LLCs This training is free. RSVP today.
This article is not intended to provide legal advice, but only general guidance that may or may not be applicable to your specific situation.
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