Who here has LLC behind their name and why? Explain to me why I should get this. TIA, Shawn <><
I do. The reasoning was it was only $100 and by being an LLC if I were to be sued they cannot come after personal property. As a sole proprietor they could come after your house and all your personal assets. Also as a sole owner of an LLC you can still file your taxes for the business under your regular taxes (if I understand the paperwork correctly
I am extremely new at this but that is my limited understanding.
Kristin
Same reasons as above, plus we have a couple of projects going on so with a parent name of "ABC, LLC dba...." we can do business for our different projects as a DBA of the LLC. (oh geesh, we're getting into alphabet soup, huh?). I can set up all of the paperwork (insurance, licenses, etc) under the LLC name and it's much easier to set up separate companies for the different lines of business. For example, our catering is under Cater It Simple; our cookies are under "Banna's Cookies"; we have a couple of other ideas brewing and they would be under different names.
The primary reason is the financial protection, especially as our business doubled then tripled.
very crucial to figure this out when starting out because it can protect your assets. Let's say worst case scenario someone sues you for x,y,z. As a sole proprietor if they sue you and get a judgment against you they can collect on it from all of your assets. That means your house, car, etc. If you have an llc (limited liability company) they can only collect on your contribution into the llc. If your start up capital that you contributed into the llc was $500 then that's all they collect and they go away. This is crucial not just in cake decorating business but every kind of business. Also, look into estate and tax planning to lessen liabilities. hth, jackie
I'm an LLC as well and agree with all the previous posts. Before motherhood I was a manager in a mid-sized law firm and I have learned that people are NUTS and you have to do what you can to protect yourself. Mine was $125 (probably based on where you are) and it is worth the peace of mind. All this and I have three BIL and one SIL who are attorneys and I was tired of them riding my case about it!!!! LOL!!!!!!
-Michelle
I say, "just do it"!
I do. The reasoning was it was only $100 and by being an LLC if I were to be sued they cannot come after personal property. As a sole proprietor they could come after your house and all your personal assets. Also as a sole owner of an LLC you can still file your taxes for the business under your regular taxes (if I understand the paperwork correctly
I am extremely new at this but that is my limited understanding.Kristin
How do you get LLC?
Check your state's Secretary of State webpage. They will have all of the info you need to get started. A lot of states have the paperwork online you can file and pay by credit card.
It's a good idea to become at least an LLC to protect your personal assets.
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