Should you be an LLC?

First, you may be wondering what an LLC is.  It stands for "Limited Liability Company."  That pretty much says it.  Your liability (for the debts of the business) is limited to your investment in the business.  It is not a corporation.  The advantages of the LLC are:

1.  It looks more professional to be an LLC

2.  It still allows you to pay taxes as a sole proprietor, on your 1040.

3.  It gives you some protection against creditors and others who might want to sue you.

IMPORTANT:  Being established as an LLC does NOT protect you from being sued by an irate customer who feels you have damaged them in some way. For this, you would need professional liability (malpractice) insurance.

4.  Setting up an LLC is much easier than a corporation.  You set it up in your state, through the office of the Secretary of State.  You make application and fill out an Articles of Organization form and pay a small fee (usually under $100).  You don’t need an attorney to do this.

Planning for Writing Success has more information on this and other subjects relating to this and other business startup and operations subjects.