Making the switch from freelancing to setting up your own Limited Liability Company (LLC) brings a variety of benefits. The main benefit is limiting your liability. You won’t be accountable for debts and you’ll not be personally liable during a lawsuit against the business, even though there are some exceptions to this rule.
There are also pitfalls to forming an LLC. You will be required to assume a more formal managerial structure, and there are numerous more rules to be met. It is feasible to complete all paperwork, and make sure that you yourself meet regulatory requirements, but sometimes it is better to get an lawyer when filing. Very few people have specific experience with setting up an LLC, but your lawyer will have it, so they will understand the potential problems and challenges you face.
LLC entity
One of the reasons limited liability companies became so popular is because they’re comparatively easy to set up. This is particularly true if you’ll be managing the business yourself, haven’t any outside investment, and won’t be hiring other members of the team.
In most cases, and particularly for people who are running their own business, an LLC is the best and simplest entity. They are flexible and permit the organization to be run by one person. Alternatively, you can include additional partners when applying. If you plan to go public in the future, otherwise you have outside investments who want shares in your business, an lawyer can help determine whether an LLC is completely the most suitable optionor whether you might be better served by a different type of business.
Legal documents
There are many paperwork and legal forms involved when completing filing. While forms are designed to be as easy as possible, they do take time and a degree of understanding to complete successfully. An experienced lawyer will have the expertise to handle this, which means you can focus your time and energy on finding new clients, best source of business placeand fulfill the contract.
Changing Regulatory Requirements
Legal requirements change and evolve regularly. What’s more, different states have different requirements, so even if you have set up an LLC before, you may not have current or accurate information this time around. An lawyer who specialises in business filings is aware of the latest regulations and will make sure that your documents are properly completed and submitted.
Other Services
You can even ask your lawyer to help with other essential services. For example, they may draft legally binding contracts to issue to suppliers and customers. They can do business name searches and seek trademark protection for your company.
If you plan to hire any employees at the start of your business, your lawyer will make sure that you comply with federal and state employment laws and make sure that you also comply with regulations in this area. They can even draw up company and employee handbooks and employment contracts to make sure that you can legally employ others.
