Why an LLC?
I once read that the chances of getting sued on any given day in your business is greater than your chances of going to the hospital. That’s why I find it alarming that so many people are engaging in business with the general public as a sole proprietor. Unfortunately a lot of people don’t see themselves getting sued and for good reason. Who wants to think about the worst; people try to see the positive. Why do you think Vegas makes so much sans current economic factors? Because people see that remote, small window of hope and latch on to it regardless if the chips are stacked against them, no pun intended.
This is why I say forming a Limited Liability Company should be the next major step because not only does it separate your business from your personal assets in the event of a lawsuit or audit, forming an LLC can be seen as an investment in your business that yields a much better chance of earning you more money than rolling dice at the craps table. Forming an LLC establishes credibility amongst your competitors, earns you very similar tax benefits to what corporations are allowed and your CPA, which you should have if you don’t, can pinpoint more deductions for you. So why gamble, forming an LLC is the fastest way to protect yourself while generating a return on investment greater than you might expect and for a very nominal cost.
