A number of factors are converging to prompt people to start their own businesses. First, the Internet has opened a floodgate of opportunities, both in terms of business and promotional opportunities. People are no longer restricted to setting up shop in their neighborhoods, or forced to compete with local companies. Instead, they can have access to a global marketplace and use the power of the Web to promote their products and services. Second, the nature of the job market is such that people no longer expect to work for one company for life; instead, they can pick up the experience they need at a variety of companies and use that as a springboard to launch their own entrepreneurial effort. Third, today's rocky economy means that people are feeling less secure about their own job security and are seeking out ways to supplement - or supplant - their primary income.
Advantages of Forming an LLC or Corporation
From a legal standpoint, people who launch their own businesses most often start out as sole proprietors. Over time, however, they usually realize that a sole proprietorship is less than ideal in terms of tax liability, personal liability, and financial planning. For most, it makes more sense to form an LLC or incorporate their business. That's because, in an LLC or corporation, the owner's personal assets are shielded. If, for example, the business is sued or faces bankruptcy, the principal's personal property and funds are protected. An LLC or a corporation also enjoys tax advantages over a sole proprietorship. For example, the costs of medical, life, and disability insurance are often deductible to a legal business entity, but not necessarily for a sole business owner. In addition, as a business grows, a corporation can issue and sell stock, which can be crucial to raising the capital investment needed for expansion.
LLC Formation is Easier than You Think
Many sole proprietors hesitate to incorporate or form an LLC because they think it's too complex, or simply don't know how to go about it. In reality, you can form an LLC online quickly, easily, and affordably. If you think that forming an LLC or corporation would be beneficial, you can avail yourself of the online services that will do the heavy lifting for you. Indeed, for a small fee, a company that has expertise in forming LLCs can guide you through the process and do the legwork.
What to Look For
When you want to form an LLC online, make sure to look for a company that is both reliable and thorough. For example, the company you choose should conduct a name availability check with your state, prepare your articles of incorporation/organization and file them, keep you informed about the status of your filing, and so forth. The company should also offer registered agent services, be able to secure your federal employer identification number, and high quality corporate and LLC kits.
When you select the right service, it's a breeze to form an LLC or to incorporate. In the long run, both you and your business will benefit.