For years, you have been working for others, building your skills and squirreling away your money. The purpose of all that hard work and discipline is so that you can start your own business. You may have given a lot of thought to your plan of action, how you will operate your business, and the kind of product and service you will provide to the public.
However, have you considered that your business may place your personal assets at risk? If you intend to work with the public or if your business requires the use of expensive equipment, you may consider setting your business up as a limited liability company.
Is an LLC right for me?
In some cases, an LLC may not be the right business entity. For example, if you are selling items online or working as a freelance writer, you may not need such protection. Nevertheless, it never hurts to seek legal advice to ensure you have considered every contingency as you step into the world of entrepreneurship. You may find that an LLC offers you just the advantages you are seeking as you start your business, for example:
- You may be able to lower your self-employment taxes by taking salary plus dividends as your income.
- Your business may be eligible for tax benefits you could not take as a sole proprietor.
- Your LLC's Operating Agreement can keep your business running smoothly by providing a framework in which you operate.
- An LLC Operating Agreement can also help bring about satisfactory resolutions when disagreements arise between you and your partner or partners.
- An LLC protects your personal assets from liability if the business faces a contractual lawsuit.
While an LLC allows you to keep your own finances separate from your business in case of a bankruptcy or contractual dispute, it will not protect you from personal liability for damages or injuries you may cause while on the job. Your attorney can advise you on the best insurance coverage for those contingencies.
Deciding on an LLC for your business entity offers many advantages. Another way to ensure your business enjoys many advantages is to work closely with an experienced Ohio business law attorney from the beginning of your venture, through succession planning, during legal disputes and conflicts, and when the time is right to dissolve the business or pass it on to the next generation. Such an advocate can prove invaluable to the success of your business.