Starting a new business is an exciting time, but it’s one that comes with some major responsibilities. One of the decisions that you have to make is how to structure the business. For people who are going to work alone, the decision is whether they want a sole proprietorship or a limited liability company.
While there are similarities between these two, the LLC has many benefits that a new business owner will appreciate. One of the primary benefits is that there is a division between the owner’s personal assets and the company’s assets. This means that if the business is sued for something, the personal assets can’t be touched. There are also tax benefits to an LLC that entice some business owners to use this structure.
Who runs an LLC?
If you’re the only owner of the LLC, you can still run the business. If the LLC has other owners, you can only act within the confines of your position at the company.
Another aspect of an LLC to think about is that you need to name a registered agent. This person is the one who can accept official mail, notices, and service of process for your company. You don’t have to be the registered agent, and many LLC owners opt not to be the registered agent for their company.
Anyone who’s starting a business should ensure they structure it so their personal assets and the business have as much protection as possible. Working with someone who’s familiar with this area of a business startup is valuable since they can help you learn what you need to know. Carefully consider all the options available to you so you can do what you feel is best.