Forming An LLC Can Save You Money

It is a fact that many people who are in business do so as a sole trader. From most points of view, this is fine, except for one very important point, and that is the issue of liability in the case of a sole trader being sued. Many sole traders do not know that if they are sued they could be at risk of losing their personal assets such as the house and personal savings. For this reason it can be a good idea to consider forming a limited liability company, which will protect your personal assets and which can be easily formed by using an attorney or a company formation agent. This article will look at these points and discuss some considerations that need to be borne in mind when forming your own limited liability company.

As mentioned above, the issue of limited liability is a very important one, since a lawsuit to do with your business could actually end up with you losing all of your personal assets and lead to personal bankruptcy. However by forming an LLC you are for the most part protected when it comes to the issue of personal assets. If you are sued due to negligence in your business the aggrieved party can sue your company and can take money from the company structure, but cannot take money from your personal assets. This is something that many sole traders never even take into account.

So how do you form a limited liability company? One of the easiest ways is to hire an attorney who has experience of forming an LLC. The attorney will help to get you the correct forms, help you to fill them in, and submit the form to the correct authorities in order that your limited liability company can be formed as quickly as possible. In order to find a company formation attorney all that you need to do is look in the telephone directory. Most of these attorneys will advertise their services there and can be easily contacted.

The other alternative is to use a company formation agent, which is a company that deals specifically in forming companies, including limited liability companies. These can sometimes be cheaper than using an attorney to form a company. If you are definitely looking to save costs, one of the best options may be to look at an online company formation agent. As the name implies, these companies can form your limited liability company through an online interface. Generally all that is required is that you download the forms, fill them in, and submit them back to the registration agent who will then register your company for you. Online incorporation agents have a reputation for being extremely inexpensive, and therefore something that should be considered when forming an LLC. Using a company formation agent is covered in more detail at http://www.llcincorporationworld.com

As can be seen, forming a limited liability company has some great advantages, not least the fact that it protects your personal savings. And given that registering a limited company can now be done easily through an online incorporation agent there is no reason to cite costs as a major barrier to company incorporation.

Carl Formby owns and operates http://www.llcincorporationworld.com, a website dedicated to information on LLC Formation

Advertisements

One Response

  1. In the long term, yes. But what if you’re not sure you’re gonna make millions but only think you will? Is LLC the best solution then too?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: