For budding entrepreneurs considering starting a business, there’s a lot more to it than just putting a sign on a door that says “open” or creating a website where you can start taking orders. Going into business involves getting it legally recognized at the local, state, and sometimes even federal levels. It means having public information that can be looked up, and following the regulations set out by those different levels of government for what a business is legally required or allowed to do.
One of the first decisions entrepreneurs must make is what “type” of business to register as. A limited liability company, or LLC, is one of the more popular choices. LLC formation services can help people to get this filing approved more quickly and efficiently.
Why Form an LLC?
An LLC is only one of the options available to entrepreneurs and can be one of the more complex options.
A sole proprietorship is often a first choice for the fastest, simplest way to start a business. However, sole proprietorships, while simpler, come with more financial vulnerability. With a sole proprietorship, there is no distinction between personal and business finances. So, an entrepreneur’s business profits are considered the same as that entrepreneur’s personal wealth. If there’s a problem with a sole proprietorship’s finances or taxes, those funds can be drawn from an entrepreneur’s personal bank account since it’s also considered “company property.”
An LLC, however, separates the owner from the business. What happens financially to a business stays there, and the owner’s personal finances remain their own to manage. LLC formation is a common option to keep personal and business assets separate.
How LLC Formation Services Help
The big difference between a sole proprietorship and an LLC is the complexity. There are much more application, regulation, and taxation rules to follow for an LLC. However, LLC formation services exist to help even new entrepreneurs to get started with confidence.
With LLC formation services, entrepreneurs work with people who know what forms, rules, regulations, and taxes will be required in their state. It’s easy to miss out on an application that must be submitted, a fee that must be paid, or the proper formatting for business documents if an entrepreneur has never done it before.
LLC formation services like DoMyLLC guide entrepreneurs through all the steps, making sure everything is done right the first time.