How Do I Choose A LLC?

What is the downside to an LLC?

The LLC does have some additional administrative requirements when compared to a sole proprietorship or limited partnership.

They are typically related to keeping liability protection in place for the LLC members.

Cost.

Compared to a sole proprietorship or partnership, an LLC is a little more expensive to operate..

Is Forming an LLC worth it?

Probably the most obvious advantage to forming an LLC is protecting your personal assets by limiting the liability to the resources of the business itself. In most cases, the LLC will protect your personal assets from claims against the business, including lawsuits. … There is also the tax benefit to an LLC.

Can I abbreviate my LLC name?

Your LLC’s name must end with the words “Limited Liability Company” or “Limited Company,” or the abbreviations “L.L.C.” or “L.C.” The word “Limited” may be abbreviated as “Ltd.” and the word “Company” may be abbreviated as “Co.” The name may not state or imply that your business was organized for some different purpose …

How do you choose a name for an LLC?

Choose a name that’s appealing, memorable, easy to use, easy to pronounce, and easy to spell. Keeping your name short is also recommended.

Why an LLC is the best option?

Limited liability protection: In total, your liability is capped at the amount you have invested in the business. This protects you from liability for any bad debts or court injunctions incurred by the limited company – since it is regarded as a separate legal entity.

Should I get an LLC for my small business?

An LLC is often an appropriate choice for small businesses because it offers reasonable liability protection with a minimal amount of paperwork and regulatory burden. Consider the pros and cons of each structure — and if you aren’t sure, it’s best to start with a simpler sole proprietorship or partnership structure.

Should I get a trademark or LLC first?

In many cases, a business will want to start the trademark application as soon as their LLC or corporation paperwork is filed. By filing for a trademark prior to launch, you can be sure that your name is protected once you begin commercial sales. However, there may be an even stronger reason to apply early.

Can two LLC have the same name?

Can Two LLCs or Companies Have the Same Name? Yes, with some exceptions. When you’re forming a corporation or an LLC in a state, the name must be unique to your business within that state. Others can form LLCs and businesses in other states that have the same name as yours.

Should my business name be my name?

The benefits of using your given name for your freelance business. For most freelancers, using your actual name is the best way to go. Not only is it great for personal branding, but it just makes your life easier. You’ve got clients and confusing tax forms now — You need something simple in your life.

Does my LLC name matter?

LLC names and domain / website names are completely separate issues. Whether having different names is a good idea is a separate business, rather than legal, issue. … An LLC (or corporation for that matter) need not have the same name as its website or product.

Should I name my LLC after myself?

An LLC that uses a personal name is no different than any other LLC. … But because an LLC that uses your name might be confused with you personally, it’s especially important to always use the initials LLC after your company name.

What are some examples of LLC companies?

Many well-known companies are structured as LLCs. For example, Anheuser-Busch, Blockbuster and Westinghouse are all organized as limited liability companies.

Is it better to be self employed or LLC?

You can’t avoid self-employment taxes entirely, but forming a corporation or an LLC could save you thousands of dollars every year. If you form an LLC, people can only sue you for its assets, while your personal assets stay protected. You can have your LLC taxed as an S Corporation to avoid self-employment taxes.

Can an LLC be a home based business?

Running your LLC out of your home can be a good alternative for the business start-up. Your business plan may call for you to eventually move your business off-site to regular business premises, but in the beginning, a home-based business may be the most viable and cost-effective option.

Do you put LLC on everything?

You should always include “LLC” on all invoices, contracts, leases, legal records, tax returns, letterheads and other purposes. In most states, it is required to add “LLC” to your business name when forming your business, filing for an EIN or paying taxes.

What happens if my LLC has no money?

But even though an inactive LLC has no income or expenses for a year, it might still be required to file a federal income tax return. … An LLC may be disregarded as an entity for tax purposes, or it may be taxed as a partnership or a corporation.

When should you get a LLC?

Any person starting a business, or currently running a business as a sole proprietor, should consider forming an LLC. This is especially true if you’re concerned with limiting your personal legal liability as much as possible. LLCs can be used to own and run almost any type of business.

What should I know before starting an LLC?

Pick the State Where You Want to Organize the LLC. … Naming the LLC. … File the LLC Articles of Organization. … Prepare the LLC Operating Agreement. … Analyze the Issues of Raising Money from Investors. … Obtain an Employer Identification Number. … Obtain the Necessary Business Licenses. … Set Up an LLC Bank Account.More items…•