Why Start an LLC- LLC Protection Explained with Real Examples
VIDEO LIBRARY
Wondering whether to start an LLC for your new business?
Many think that if the business will only be owned by one person or if the business is going to be small with very little revenue, then the LLC is not required. To the contrary, this is the wrong thinking that has caused many personal liability problems for others.
Listen to this video by Amyli McDaniel which explains how a prospective business owners should assess whether he or she can benefit from the LLC protection afforded by the limited liability company.
Tagged with: limited liability protection • LLC Protection and Its Limitations • start an llc
Filed under: LLC Protection and Its Limitations • Video Library
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Informative video! Thanks for taking the time to put this together. When discussing setting up an LLC, you mention that it is often a good idea to hire a business lawyer or a LLC formation service (for a cheaper option). Although it is cheaper to form an LLC yourself or hire a service to help, would you suggest paying a little bit more and hiring a lawyer to help with this process?
I do not believe that the formation of an LLC itself requires a lawyer unless the business has other investors (such as angels or venture capitalists) that are insisting that additional provisions be included in the official formation documents.
In fact, many lawyers outsource the administrative filing requirement to organize an LLC for their clients. . . to companies such as The LLC Expert.
However, I do think that it is always beneficial and recommended to obtain legal advice from a competent business lawyer when it comes to post formation matters such as the structuring of the LLC (which includes ownership, management and tax issues). This becomes especially important for a multi-member business.
Having said this, it is a known fact that while the ideal solution for every business is to have a proper legal adviser, over 90% of small business owners will not get one at the beginning of their entrepreneurial journey. So, the second best alternative is to make some investment in educating yourself about LLC formation and governance matters.