Limited Liability Corporations
You have probably heard about Limited Liability Corporations, or an LLC, but do you really know what it means to be such a thing? Obviously, it has something to do with a business but it seems that more and more small time entrepreneurs are setting themselves up as a corporation. Why is that? Is this something that you should be doing? You will want to find out exactly what this type of corporation is so you will be able to determine whether or not it is truly the best move for you to make.
The Limited Liability Corporations are perfect for companies or businesses that have a single owner. It is more flexible than a standard corporation is, even though this may not be the main benefit that people are going for. With the Limited Liability Corporation, you, as the owner, have an amount of protection from lawsuits. If your LLC is sued, the only thing usually at risk is the asset that belongs under your company. Your personal belongings, such as your house, and your personal bank account will not be at risk. Many real estate investors will set up an Limited Liability Corporation in order to make sure that nothing comes back to haunt them personally. Of course, should the courts detect massive amounts of fraud, the veil can be lifted and your personal assets could be at risk. A single person can have a few different Limited Liability Corporations.
Now, if you are ready to jump in and set yourself up as Limited Liability Corporations, you are in luck because it really is not all that hard. Depending on how complex your company structure is, the time it takes to get everything set up should only be a few hours. To start, you will want to pick a good name for your business and then fill out the Organization form for LLC articles that you receive from the Secretary of State Office. Depending on the state you are in, you may have to publish of notice of intent in the local paper then submit the organization form.
Small time Limited Liability Corporations might include someone who rents out one to three properties. All of those properties would be included under the same LLC. An example of large Limited Liability Corporations might be a contracting service that has a few employees and more than one owner, such as a partnership.
If you are ready to get started, you want to make sure that you have everything in order and that you are talking with your tax attorney or accountant. You want to make sure that you are prepared for everything that you will encounter. After your first full year as one of the many Limited Liability Corporations out there, you will know what to expect from then forward.