Starting an LLC for your business is a necessity in the world today, especially with legal predators who are everywhere looking for ways to take your hard earned personal assets (leeches!).
But, before you start an LLC, you must learn about ‘what’ a Limited Liability Company is, so you do not fall into the trap of personal liability even with you LLC in place. It’s not a cloak of anonymity, but a tool to help shelter and manage your asset base properly.
Below I summarize 3 things one needs to take care of before starting any LLC or Limited Liability Company.
ONE: If you do not start your LLC properly by forming the limited liability company in accordance with your state laws and requirements, you could have a defective LLC. A defective LLC is like building a house with big holes in it or without any locks. I recommend using LegalZoom.com to file your LLC, they are fast, efficient and extremely affordable. Not to mention, you skip paying Lawyer fees – and can do the LLC filings from the comfort of your own home.
Insist on retaining LLC formation services from a company that is knowledgeable about LLC requirements. Beware of fly by night cheap services who do not know the rules.
If one does not form their Limited Liability Company properly, over time, a predators can learn about the defects and expose you personally – that’s the incentive to use a firm like LegalZoom to file.
TWO: Before you start any LLC, you need to come up with a name that works for your business and is also available in your state of formation. Many business owners faced major filing delays when they start an LLC, so come up with a few possible names upfront.
Make sure your proposed LLC name is available PRIOR to submitting your LLC formation filing. In most states, once a filing is rejected, it could take 3-5 times as long to fix and complete. LegalZoom will take care of your LLC name search and cross reference for your State, you won’t have to do any work!
Insist on retaining LLC formation services from a company that will work with you to confirm a name is available prior to submitting your filing to start an LLC – this is also included in LegalZoom’s Standard LLC Formation Package.
THREE: When you really dive into the intricacies about LLC liability and legality, you find out that it does not protect you personally in every instance and situation. So if you do come under attack and are sued – please contact a Lawyer immediately for specific advice, and know your LLC will shield you from over 90% of attacks.
Every business owner should start an LLC because the protection is well worth it, but there are requirements after formation that every LLC owner and manager should know about to preserve the protection and there are some situations where the LLC will not provide protection.
This knowledge is invaluable to a business owner and something you should learn about and understand prior to the time you start an LLC. By learning the fundamentals about the LLC and how it works and does not work, you can better plan for business protection by using other methods to protect you in those areas where the LLC has some limitations.
Unfortunately, it is difficult to find this information in an easy to learn format. You can seek the advice of an attorney but this can be quite expensive and most LLC books for business owners out there do not provide the necessary information. Please take a moment and check out the LegalZoom LLC Guide – it will help you answer a lot of general questions and give you the facts.