It is not difficult to form LLC. A limited liability company (LLC) doesn’t require a large number of employees, and neither does a corporation. All that is needed is one employee really: you. Of course, a snazzy name that hasn’t yet been picked up by anyone else also helps.
How to Form an LLC: First, Be Original!
The first step to start an LLC is to have an original name for your company. This is actually the main hurdle to clear, and cannot be stressed enough. If your company has a name that has been taken by another LLC, you will have to change your company’s name. And you thought getting the Twitter handle you wanted was difficult.
Every state has their own rules whenever a company chooses to form LLC. Some states will not even allow similar spellings. So if you wanted “Wild Kids Play Palace” and another company snatched it up before you, simply changing the spelling to “Wild Kidz Play Palace” or any other creative spelling would not be accepted. Each state has their own requirements and red tape, so make sure you review the rules on form LLC for your state.
Why Create an LLC? Well, Don’t You Want to Protect Your Assets?
At this point you may wonder why anyone even goes through the trouble to form their LLC. Perhaps business is going just fine with you at the helm. It may seem you don’t even necessarily want to know how to form LLCs, just why business people do.
It’s simple, actually: when a business is a limited liability company, any debts incurred by the company are only those of the company, not the founder or its employees. Should the company run into trouble and incur debts, the founder would not be required to pay debtors with their personal assets. Put plainly, if your company goes under, you are not court ordered to sell your house, car, and so on to pay back those debts.
Working hard to get the company off the ground doesn’t need to mean that you sacrifice everything else in your life. Should you choose to form an LLC, know that there are some clear benefits.