Register
your business with your
state and local
authorities
| You
got a good business name
and you found a great
domain name by now.
|
Now comes the first step
to running an official
business. You will need
to register your
business. There are
several legal forms of
doing business available.
You could go with a
"DBA - Doing
business as", a
"LLC - Limited
Liability Company",
or go with forming a
corporation. Our personal
favorite is the LLC and
that is what we are
recommending to you. Here
are our reasons:
Limited Liability Company
(LLC)
A Limited Liability
Company is designed to
provide the limited
liability features of a
corporation and the tax
efficiencies and
operational flexibility
of a sole proprietorship
and partnership. The
actual formation is a
little more complex and
more formal than that of
a sole proprietorship
and/or partnership. A LLC
does have members but can
also be formed by just
one person (=1 member).
Basically - a LLC
receives the
corporation's protection
from personal liability
for business debts and
the tax structure of
partnerships and sole
proprietorships.
Advantages of a Limited
Liability Company (LLC)
- Members have limited
liability
- Actual taxation might
be more benfitial for the
members
- Business form looks
more professional than a
sole proprietorship in
many cases
- A LLC only needs one
member
Disadvantages of
a Limited Liability
Company (LLC)
- A LLC cannot seek
funding by offering
shares to shareholders
- The liability
protection can be removed
by a judge if it is
obvious that the members
did not run the business
as a LLC but as a
partnership / sole
proprietorship
- Less laws that govern
the LLC. This could be a
problem in complicated
business situations
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