Can Anyone Have an LLC?
A limited liability company, or LLC, is a type of business entity. There are several other options for your business structure, including sole proprietorship, partnerships, corporations, and cooperatives. An LLC is a good option for many business owners looking to form a new business, but can anyone have an LLC?
What is an LLC?
An LLC is a legal business structure that's a cross between a partnership and a corporation. An LLC consists of members of which there may be one or several and either one or more managers. An LLC offers several benefits and has a particular organizational structure.
Benefits of an LLC
There are several benefits to choosing to form your business as an LLC. Here are three aspects of this.
Protection of Personal Property
An LLC offers the owner limited liability. The business owner (or owners) are only liable for the assets they have invested in the business. Their personal property and finances are protected. This means if your business ends up in debt, you will not be liable for them from your personal savings or your house, for example.
Access to Business Account
Once you have registered your LLC with your Secretary of State, received the articles of organization and received your EIN (Employee Identification Number) you can apply for a business bank account and further funding if required. There are also some tax benefits to forming your business as an LLC.
An LLC will offer you credibility as it offers an extra level of commitment compared to setting up a sole proprietorship, which does not offer much in the way of structure. An LLC demonstrates a greater level of commitment to your business and specific features such as an operating agreement.
Can Anyone Have an LLC?
Not just anyone can have an LLC, there are some limits. Professional businesses, like lawyers and doctors, can’t form an LLC and must be a corporation or other professional entity. They will also need to be licensed to practice. However, many eCommerce and small businesses that are not registered professionals will suit this type of business entity.
You can register for your LLC at your Secretary of State website. There are several ways to form a business. You can do it yourself, hire an attorney, use an online formation company, or a short course like the Legal Stepz course. With the workbook and accompanying video, you can form your LLC easily. This course will help you with such aspects as the operating agreement for an LLC.
Final Word: Can Anyone Have an LLC
An LLC is a suitable choice for many business leaders, but not everyone can have an LLC. If you are a professional, such as a doctor or lawyer, this is not the right business set-up for you. However, many businesses will benefit from the limited liability, tax benefits, and improved credibility among other benefits. If you are looking to form an LLC, check out the Legal Stepz LLC course.