At Wilson Legal Solutions, we know that starting your own LLC can be a challenge. It all starts with finding a great business attorney in Minnesota, and we want you to know that we will go the extra mile to ensure everything comes together smoothly. But why do you need to start a limited liability company? We are sharing our thoughts in today's post, so keep reading to learn more or contact us today with any questions you may have.
Why You Need To Start An LLC
Protect Yourself
One of the biggest reasons to start an LLC is for liability protection. As a business owner, you are exposed to personal liability for the debts and obligations of the business. If you are a sole proprietor or general partner, your personal assets are at risk if the business cannot pay its debts. However, if you form an LLC, your personal assets are generally protected from creditors of the business.
Tax Benefits
Another great reason to form an LLC is for the tax benefits. LLCs are pass-through entities, which means that the business itself is not taxed on its profits. Instead, the taxes are "passed through" to the owners of the business, who then report the income (or loss) on their personal tax returns. This can provide a significant tax advantage, depending on your individual tax situation.
Flexibility
LLCs also offer a great deal of flexibility when it comes to how the business is run. LLCs can be managed by the owners (known as members), or they can appoint a manager to handle the day-to-day operations. This flexibility is not available with other business structures, such as corporations.
Asset Protection
Another important consideration is asset protection. If you own property or other assets in your name, they could be at risk if you are sued or have debts that you cannot pay. However, if you form an LLC and title the property in the LLC's name, it can provide some protection from creditors.
Wilson Legal Solutions strives to be the Minnesota lawyers that make legal problems simpler for those looking to start an LLC by removing complications. Contact us today to learn more about how we can help.