If you’ve read our post about Why It’s Important To Incorporate Your Business, then you have a good idea about LLCs already. They’re not that much different from an incorporated business. In fact, they house a lot of the same elements. An LLC (Limited Liability Company) is a hybrid of a corporation, partnership, and sole proprietorship. These three company formats got together, and artificially inseminated themselves into the most brilliant way to protect your assets: an LLC.
So Why Get An LLC?
An LLC is an entity in and of itself. The owner, or owners, are free from liability, hence the name. It’s not the same as a sole proprietorship, where, if someone falls on the sidewalk in the middle of winter, you’re basically giving them the key to the chocolate factory. Instead, assets are divvied up from the capital within your business. It also allows you to pay yourself standard paychecks instead of drawing directly from accrued capital. It’s easier to avoid pitfalls with over-spending earned income on personal ventures.
Anyone Can Have An LLC
It’s true—it’s not a bad thing, either. Those who travel to the United States on business don’t have to be US citizens in order to conduct business on behalf of their LLC. This is the most common avenue for international businessmen who wish to gain a foothold in the US marketplace.
Businesses aren’t self-sufficient empires. Even when you work with intangible content, such as digital marketing, you’ll still need suppliers for your physical office supplies, and other digital content such as graphic design companies. This is where your LLC comes into play. Nothing helps you more than a professional appearance, in just about every aspect.
The Bottom Line
Both proverbially and literally—your bottom line is the entire point. You don’t create an LLC for it to be a charity; you need to make money. An LLC also allows you to take out loans against the credit of the company; not your own personal credit. When it comes down to it, why wouldn’t you push forward, take the plunge, and make an LLC?