In a word—yes. You would benefit greatly from incorporating your business as a limited liability company (LLC), as opposed to operating it as a sole proprietor or as part of a group of partners in a general partnership. An LLC is a relatively simple means of incorporating a business, with many benefits for small-business owners.
The primary benefit of an LLC is in the name—limited liability. Incorporating your business as an LLC protects your personal assets in the case of loss, debt, or lawsuit. Like corporations, LLCs are a legally separate, artificial person from their owner or owners.
There is one beneficial area in which LLCs are not separate from their owners: taxes. Rather than file a corporate tax return in addition to one’s personal taxes, LLC earnings and losses are reported as part of individual tax returns. Incorporating as an LLC, as opposed to a C-corporation or S-corporation, also exempts owners from the obligation to hold annual meetings and record minutes.
The major drawback to an LLC is that owners cannot sell stock in the business.
By forming an LLC, you ensure your assets are protected and that your business seems more credible in the eyes of the world. While forming an LLC is a relatively simple process, it is best to contact an attorney to make sure everything is filed correctly and to your absolute benefit. Call our office today to schedule a consultation.