Get Your LLC Formed for the New Year

By Michael Safren, Esq.

As we jump into the new year, many people will be starting the new year off with a new business.  Starting and owning a small business is a great way to follow your dreams while also finding a way to support your family.  As a small business owner, I know that owning a small business can be fun, empowering, and hopefully profitable, but there can be a number challenges and concerns as well. 

One of the key concerns is to ensure that any business liability, whether that be a business debt, a business loan, a lease for business property or business equipment, a business credit obligation, or even a lawsuit against the business does not become a personal obligation to pay or collectable against personal non-business assets.  In this increasing litigious environment, business owners want to be able to shield their personal assets like their house, their personal vehicles, their bank and investment account, and their other personal assets from their business’s obligations. 

The first step to gaining this separation between business and personal obligations is to form and register a legally recognized business entity such as a Limited Liability Company (LLC) or a corporation. These business entities create a separate legal being from the actual business owner. This separation can prevent lenders, judgement creditors, and even the government from gaining access to the business owner’s personal assets such as their house, vehicles, and cash, to satisfy a debt or obligation incurred by the business.

For most small business owners, a Limited Liability Company (LLC) is the business structure that offers the best liability protection for you as the owner and operator of your business.  An LLC combines the limited liability of a corporation with the flexibility and the ability to minimize many business formalities provided by a partnership or sole proprietorship.  The law generally holds that an LLC, properly formed and maintained, is a separate entity from its members.  That means that if your business has unpaid debts, obligations, or is sued, your personal assets, such as your home, your bank account, and future wages, are protected from any liability. 

The best way to make sure your LLC is providing the maximum amount of protection for you and your assets is to have an experienced attorney help you form and maintain that LLC.  Getting legal help with your business is not only for Fortune 500 companies.  In fact, having a strong relationship with an experienced business attorney can help you navigate the legal requirements to help your business grow.

If you aren’t sure if your LLC is providing the maximum protection you need, or if you need an LLC for your business, Contact Us.  Experienced legal guidance at the inception of your business will provide a firm foundation for your company to grow upon.  We want to help you make a plan to make the most of your business!