LLC also known as Limited Liability Corporation or Company is a type of business entity. Which is much like a corporation, just cheaper and less paperwork to obtain. When you operate under a LLC, you qualify for a tax ID number from the IRS, you can also open a bank account and perform all of your business transactions under your LLC name.
The main advantage of becoming an LLC is that the owners of the LLC are no longer personally liable for any debts or legal matters involved in the LLC. If the LLC were to go bankrupt, the owners would not be liable to pay from their own pockets. The same if the LLC were to be sued for damages. The owners personal property is not at stake, only the assets owned by the LLC.
Becoming an LLC is actually quite simple. The first thing that you would need to do is visit the secretary of the state’s website that you are wanting to be an LLC in, and make sure that the name that you are wanting is not taken. Once you have chosen a name that no one else in your state has, you can then print and fill out the paperwork yourself and send it in. Or, you could hire a business attorney to take of this for you. By paying him a small fee, he will draw up all of the paperwork that is needed, and then ask you a short series of questions, have you sign on the dotted line, fax your paperwork in for you, and you are in business. Simple as that.
If you are considering going into business for yourself, checking into becoming a LLC is a great idea. You never know what the future will hold for you or your business, and it is best to be prepared.