If more business owners would just realize how beneficial it is to form an LLC, many founders could have been saved from bankruptcy. There are many small businesses today and this is not surprising because today you don’t even need large sums to put up one.
It might be easy to put up a small business, it’s also easy to get it messed up and closed because you only have so little financial capacity to make it stand on higher grounds and compete with other bigger companies.
In the city of New York business closing does go up to hundreds each year: and the data is not all surprising. It is you either make it or break it. Even big business take a big hit and never recover from it, what more if it’s a small business.
There are some small businesses that thinks or/and prefers that their business will remain small: And they should think about forming an LLC. Forming an LLC is not for every small business but it’s something that small business should look into as an option because you will never know when a storm hits, and when that time comes you need to be sure that you are secured.
Why should small companies consider forming an LLC?
- The members will have limited liability for the debts and liabilities of the formed LLC.
- The Tax is based on the founder’s personal tax and not the business.
- Getting more flexibility in the distribution of losses and profits among owners.
- No restrictions on the numberof owners.
- Flexibility in company’s structure in management.
- Allows for various membership classes.
- No meeting requirements and a more informal approach to paperwork than S or C Corporations.
- Perception of legitimacy as opposed to a general partnership or sole proprietorship.
- Needs the consent of all members in order to increase its numbers.
For people that don’t know about LLC, it’s not an insurance. It’s more of a protection: using the law to protect your interest, separates companies properties from its owners and saves the owners properties from being merged with the company’s properties if things don’t go their way. This is very important because even of a business closes, the funders or owners will still have means to get up and apply their learning to their new company. The company may have died but the learning and vision should not die along with it and that is something something that small companies benefit from an LLC
Make no mistake, forming an LLC is a challenge alone and it moire paperwork and mistakes you encounter the more frustrating it can be that is why there are experts in this field that can help you prevent losing your hair just by forming an LLC alone. That’s the job of your business, but for LLC formation there is no better partner to handle this than Windsor Corporate Services.
Here’s a link for their for to get started: https://windsorcorporateservices.com/form-an-llc-in-ny/.