Whether you are starting a new business or have been in business for years, choosing the correct structure for your organization matters. The types to choose from include: sole proprietorship, partnership, LLC, series LLC, corporation, and many more.
Did you know....that if you have a sole proprietorship, you could be held personally liable for obligations of your company? ....if you have a partnership, you are personally responsible not only for your business mistakes, but for the business mistakes of your partners?
LLC stands for limited liability company. Owning your business as an LLC protects you from having personal liability resulting from the business. You can have co-owners, called members, or you can be the sole owner of an LLC.
If you have multiple business interests, a series LLC may be useful. Each of your business interests is owned by the LLC in a separate and distinct series. This structure not only insulates you from personal liability, but insulates the assets in each series from liability from the others.
For example, if you own a small business, like a car wash, an LLC may be a good choice for you . However, if you own several car washes, a Series LLC would be a better choice. Each car wash would be owned in a separate series. The result is that you would be protected from personal liability arising from the LLC and each car wash series would be protected from liability from the other car wash series.
In general, an LLC has similar personal liability protection as a corporation. However, formation is easier and there are fewer ongoing reporting requirements.