When building a limited liability company or LLC you want to make sure you take all the necessary steps to protect yourself and your business. If you create your LLC properly, then you are able to protect your personal assets from seizure if something goes wrong with your business.
1. Check your state's filing policy. In Texas, you are able to go to the Texas Secretary of State's website and they provide forms that meet the minimum state law requirements. You must file a certificate of formation with the Secretary of State and this can be done online.
2. Talk to a tax professional. Making sure your finances are properly in place for a new business is key. You want to make sure you understand the tax and financial structure of your LLC and what forms you have to fill out and file with the IRS when tax season rolls around. Getting a CPA to help you set up for your books and keep track of assets and liabilities is important to start up front before the business starts to garner business.
3. Employees or Independent Contractors? When forming your LLC you need to determine if you will have employees or independent contractors. Labor laws vary when it comes to employees versus independent contractors and misclassification on your part can cause huge financial risks. Taking an overview at specific state and federal laws governing categorization of workers before you hire someone can be extremely beneficial for the efficient running of any business.
Written by Intuitive Edge Team