You often see "LLC" after the name of a company. LLC, or limited liability company, refers to a form of business in which owners have limited liability. An LLC is a cross between a corporation, which has limited liability, and a partnership, which has tax advantages and greater flexibility than a corporation. There are many benefits of an LLC designation, especially for sole proprieters.
You can form a corporation or an LLC online at very reasonable costs that will save you money and problems in the long run. A properly run corporation or LLC protects the personal assets of owners from debts or court judgments against the company. If your business fails or goes bankrupt, for example, your creditors cannot force you to use your home, car, and personal financial accounts to settle your debts if the business is a limited liability company. Sole proprietorships and partnerships offer no such protections, leaving owners vulnerable to devastating personal losses if their businesses do not succeed.
You can incorporate your business or form an LLC in any state, whether or not you live there or conduct your business there. Small business owners, however, typically do it in their home states in order to avoid duplicate paperwork, costs, and regulation. That said, some states make the process easier and some make it more difficult. State regulations are subject to change, so it's important to check on them when you are ready to incorporate or form your LLC.
To incorporate you must file Articles of Incorporation or a Certificate of Incorporation with the state. States require Articles or Organization of a Certificate of Formation to form an LLC. Most states process filings in three to five weeks; most states will expedite the process for an additional fee.
You have the choice of filing yourself or hiring a company experienced in business formation to do the filing for you. Typical services include checking name availability, preparing Articles of Incorporation or Organization according to state statutes, forwarding Articles to the appropriate state agency for filing, and monitoring the progress of your filing. While professional filing services do cost money beyond the state-required fees, they can save you time and money by doing it right the first time. They know how to satisfy each state's requirements, and how to troubleshoot if need be. By handling the paperwork for you, professionals free you to establish and grow your business. And online filing makes it that much easier.
If you do decide to seek professional assistance, look for a company with significant experience forming corporations and limited liability companies. Look for companies with affiliation with the Better Business Bureau or other business associations. Steer away from websites that are unclear or difficult to navigate, and from services that do not specify their costs upfront. Look for services that stand by their work with a satisfaction guarantee. A website with detailed information about the process and the regulations is a good place to start.
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Chris Robertson is a published author of Majon International. All Rights Reserved. Copyright 2011 (Mon Jan 11 2010) Majon International. Majon International is one of the worlds MOST popular internet marketing and internet advertising companies on the web. Visit their main business resource internet marketing web site at: http://www.majon.com
