May
23
The decision to start a business should not be taken lightly – there are many factors to consider before taking the plunge. One of these factors, often overlooked by small businesses, is how you will be taxed as an individual or as a company.
Registering your company as an LLC protects you from personal liability and allows for taxes on your profits to be passed through at potentially lower rates than if you were taxed at individual levels. This blog post will highlight some signs that it’s time for you to register your company as an LLC so we can help ensure your success in starting a business. Signs that an LLC is right for you:
Your Business is Generating Significant Income
If you have a business that generates significant income, it is time to register an LLC. Registering an LLC will help you to protect your assets.
Your Business is Growing
If your business is likely to growing and you are facing problems with management, registering an LLC is advisable. It will also help you with growth in the future.
Your Assets and Liabilities need Protection
If you want to protect your personal assets from liability for company debts and obligations, consider registering an LLC. It will help you to protect and manage them accordingly.
Your Taxes are Difficult to Manage
The IRS requires you to file as a corporation rather than as an individual. If you are confused about managing your taxes then you need to go about it the right way. When you register an LLC it will be easier to manage everything.
You are Looking for Financing
You’re considering borrowing money for your small business and need protection from personal creditors who might otherwise go after those funds if you default on the loan.
Before you seek financing, you need to separate your business and personal finances. registering a company will help you to put a clear distinction between you and your business.
If you want to start your own business, but are still deciding what type of entity should be the best fit for your goals and needs. You may want to consider registering an LLC if you’re a sole proprietor or partnership and are unsure about incorporating.
The process is simple as long as it is done by a professional company. You will need to do filing registration with both state agencies as well as federal authorities like the IRS.…