If your business gets sued, will you lose everything?

June 17, 2022

If you're a small business owner, you are probably concerned with losing your personal assets because of a business lawsuit. You will nod along with me when I say there are a lot of decisions you need to make when starting. Everything from creating a website to deciding on a brand image must be done correctly.

But what legal and accounting decisions have you made to safeguard your company? You'll need to make these judgments if you want to see your budding business prosper in the long run. This is where a Limited Liability Company (LLC) comes into play. But why is an LLC necessary for your company?

?Many businesses, whether single proprietorships or partnerships, rely heavily on LLCs. They provide credibility, offer significant tax advantages, and, most crucially, protect your assets.

?LLCs provide legal protection.

• One of the most common reasons for forming an LLC is that it provides similar legal protections to a corporation by limiting the owner's liability while still allowing you to run your business like a small business.
• This means that your personal assets and liabilities are separated from your business assets and liabilities. In most circumstances, your assets are not at risk if a lawsuit is filed against the company. Only the company's assets are included.

?LLCs have a lot of tax advantages.

• The pass-through treatment of income taxes is another important reason to incorporate an LLC. You can avoid being taxed twice by the IRS (as you would if your company were a corporation) by including your business taxes on your individual tax return.
• In addition, when it comes to taxing essential items like office space, advertising, and other expenses, the LLC provides much-appreciated relief to new business owners. You can deduct or completely write off expenses if you form an LLC.?

?LLCs are an indication of legitimacy.

• Customers will be able to see that your company is formally registered with the state, giving you a more substantial reputation and making them feel more secure in your ability to trust you.
• Similarly, banks and potential investors will be more likely to give you funding and support your business as it grows.?

The following is Information on Business Legal Plans by LegalShield, brought to you by ?Wada Ink, LLC, an Independent Associate, General Agency. *

?Start your business off on the right foot.

We understand that forming a new business entity can feel like just another task to complete. Creating a suitable entity may not seem crucial compared to everything else required to start a firm, but it is critical.

?With Confidence, Start Your Own Business

Unlike other organizations, we don't offer quick DIY solutions that leave you to sort out the specifics on your own. With Launch by LegalShield, you'll always be able to speak with your lawyer, who will guide you through the LLC creation process. Every step of the journey, we'll be there for you.

And we don't just vanish once your company is up and running. You'll get three months of ongoing assistance with legal advice and consultation on a wide range of company issues.

You have immediate access with Launch by LegalShield. You'll never need to rely on do-it-yourself solutions again. Get three months of LegalShield's personal legal plan, plus the Home Business Supplement, so you can concentrate on what you do best: running your business.

Business Legal Plan With three months of LegalShield's personal Legal Plan and the Home Business Supplement, you'll have ongoing legal support after incorporating your company. You won't waste time trying to solve complex corporate legal problems on your own if you have access to a law firm.

• Business Name Check
• Business Startup Consultation
• Entity Formation
• Tax ID/EIN
• Worry-Free Filing

What are you waiting for? Get your plan today! Click here. Message me for more info.

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