So what’s the big deal about LLCs anyway?
As a business owner, you’ve heard the term countless times, you might even have one already. Here’s a refresher:
“A Limited Liability Company (LLC) is a business structure in which the owners are not personally liable for the company’s debts or liabilities.”
You read that right. An LLC protects you the way a sole proprietor can’t because it keeps personal assets safe while you run your business. Let’s be real: ugly things happen when we least expect it so never know when you’ll need it. I’ll explain:
💰 Your personal assets could get seized if you get sued.
Personal liability is on the line for sole proprietors, contractors and businesses without a legal veil of protection such as an LLC. I once had an entrepreneur friend who didn’t have an LLC – when they were sued, they nearly lost everything in the settlement including her home and her car. It took months of litigation and in the end, had to pay a hefty sum out of her personal funds to settle the case. Had she formed an LLC in the first place, her personal assets would have been protected and untouched.
🙅♀️ Your personal assets could get seized if your business partner or employee gets sued
It’s one thing if YOU made a mistake and had to pay for it, but it’s an entirely different thing to pay for somebody else’s mistake. Oh hell naw.
Let’s say you get into business with someone and they do some type of wrongdoing. If the LLC is found liable, then your business cash and property can be taken to satisfy the debt. However, if you didn’t have an LLC, then *your* personal assets could be seized to pay for someone else’s mistake. Jesus take the wheel.
📉 If your business or partners are in debt, you can be held personally liable
If things go bad, you can rest easy knowing that your home, car and other assets are safe from being seized by creditors and banks. Sure, they will demand that you secure your assets in an effort to guarantee you’ll pay off any business loans, credit cards or other debts left in the LLC. – But you won’t have your assets taken from you. That makes all the difference.
Are you sensing a theme here? Forming an LLC could be the best business move you make this year. An LLC gives you personal protections from failings in your business, your partners and debt. What’s not to love?
Ready for more? It’s time to take your business seriously. Come to my LLC workshop that I’ll be co-hosting Wednesday December 16th at 11am PT with my attorney friend Asha. We will give you the low down on LLCs including 3 money-saving tax strategies for your LLC. This workshop is for you if:
-You are a sole proprietor or contractor who is thinking about forming an LLC
-You already have an LLC and you
-Want to maximize your tax-savings with your LLC