You may ask yourself: what is an LLC, how do I formulate an LLC, and what are the benefits of formulating an LLC for my business?  LLC stands for Limited Liability Company.  The ability to formulate an LLC is established through state statute.  To properly formulate an LLC, it is important to solicit an LLC attorney to assist and advise in the drafting of articles of organization, an operating agreement, and meeting minutes.  An LLC attorney can also assist you in choosing the right name for your LLC, filing for an EIN (Employer ID Number), and filing the appropriate paperwork within the state you are formulating the LLC in. By formulating an LLC you are creating a business organization that that limits your liability for your LLC’s debts and dealings, much like the protections larger corporations are afforded. The greatest benefit to the small or mid-level business owner is avoiding the stifling taxation that larger corporations are saddled with.

Because of the ability to formulate an LLC, business owners can now be provided greater protection from business liabilities.   Whether you are the sole owner of your business or have multiple business partners, you should consider the option of formulating an LLC to provide greater business protection for your business.  This decision will bring greater stability and long-term viability to your business.

Additional Resources:

Entrepreneur Article

IRS Article

Creating an LLC the Right Way

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