Why Should You Create an LLC?

Here is something you should probably do if you want to go into business for yourself: create an LLC. This means "Limited Liability Corporation" and it is essentially a legal structure that separates your business concerns from your personal concerns. The LLC is your business.

That being said, why do it if you have an unproven business idea? Well, the most important reason is to protect your personal assets from any liability from your business actions. IE: if something you do as a business hurts someone they can only sue you for your business assets and not personal assets such as your home and beannie baby collection.

Another reason is that you will gain credibility with your clients. People want to do business with an entity that they perceive as being established in some way. The ", LLC" at the end of your business name and product could be enough to cement the sale in some people's minds.

Finally, formally creating a company is a sign for yourself that this is serious business. The **** is on now! This calls back to the notion of "mindset" and a lot of the people I have been reading say that success simply has a lot to do with mindset.

So, on that note I have submitted paperwork to get the process started in my home state. I used the online service LegalZoom which put me back about $600. However, you can get a real lawyer for more or try to do it yourself for less (~$200). In the next few weeks I will update this blog on the success of this part of the process of setting an small business.