Starting your own business and being your own boss is an exciting prospect. To ensure your entrepreneurship runs smoothly, talk to an attorney about structuring your operation as a limited liability company, or LLC. This is one of the simpler business structures, and it prevents you from being taxed twice as a corporation would. Here are some other benefits of this business model.

Advantages of an LLC for Entrepreneurs

1. Protect Your Assets

Establishing an LLC protects you and your assets from potential lawsuits; plaintiffs will be required to sue the LLC entity, not you personally. Say you own a restaurant and a customer finds glass in their food and takes legal action. If you haven’t formed an LLC, they might try to hold you personally liable. If their lawsuit is successful, you could lose retirement and savings accounts and even have assets like your car seized for liquidation. Ask an attorney to see if this structure is best for your company.

2. Establish Ground Rules for Business Operations

Your LLC can be single- or multi-member. If more than one person is involved, establish regulations for how the business will be run via legally valid documentation. If disagreements arise between you and your business partners, this paperwork will guide decisions based on what’s best for business — not people’s emotions.

3. Make Your Business Easier to Sell

If you plan to sell your business in the future, establishing it as an LLC will lend legitimacy and make it more marketable. Your attorney should include a buy-sell agreement with a business valuation clause, which specifies how the business is to be valued. It could follow a formula, like stating it’s worth three times the gross profits after taxes, or merely note that a business valuation expert should assess future value. When it’s time to sell, this will be the point of reference for your asking price.

Let Riley Resar & Associates PLL guide you through the process of forming your limited liability company. Since 1984, these attorneys have provided Lorain, OH, and the surrounding Northern Ohio area with reliable legal services. Their lawyers are dedicated to offering top-quality legal advice and a high level of customer service. Visit the law firm’s website for an overview of their services. To schedule an appointment with an attorney, call (440) 244-5214.