Business ventures can be challenging, especially in the beginning stages when money is extremely tight.
This leaves many aspiring and existing business owners asking “Do I need to make money before actually forming an LLC?”
If this question is stuck in your head, you need to consider a few things.
First, it’s important to remember that you can’t follow the crowd in everything. In other words, don’t just file an LLC because it seems to be the most popular thing to do. You must do what’s best for you. This means that you should start by talking to a lawyer and CPA, who can put everything in perspective from a legal and tax stand-point. LLC’s are state-regulated, allowing rules to vary in each state, so you want to make sure that you’re in
Secondly, be mindful that the purpose of an LLC is to limit your liability. It places a barrier between the business and yourself.
If you’re entering business relationships under your personal name right now, it would be wise to stop. It’s not good practice to continue doing business in this manner. If something goes wrong, your customer or client could come after your personal assets in a lawsuit, instead of
Make sure that you are protected. Trust me, you will sleep better at night, knowing that your home and other personal assets will not be at the center of a business lawsuit.
Before putting pen to paper to fill out paperwork for an LLC you also want to think about the foundation of your business. You want to make sure that you have a viable business.
A few questions that you should ask yourself are:
“Is my business sustainable?”
“Do people want what I’m selling?”
“Do I know who I’m selling to?”
“How much am I selling it for?”
If you haven’t thought about these answers, don’t move quickly into forming an LLC. Instead of moving quickly, move strategically with an effective business plan.
Remember while it’s exciting to see a profit in your business, waiting too late to protect it could be risky. This is why you must learn which kind of business entity is best for you from the beginning.
In fact, if you want to learn more about business entities as a new or aspiring business owner, I would love for you to join my program, the Launch Legally Incubator. Inside of this 12-month program, you will dive deeper into topics like this. You will also have the opportunity to ask more in-depth questions, have regular access to me, receive discounted consultations, and discounted legal services.
In addition to all of those amazing resources, you will also be surrounded by a community of like-minded entrepreneurs in a private community where you can receive the accountability that you need to get your legal and business house in order.
This course gives you an opportunity to truly thrive in your business and avoid legal pitfalls that many entrepreneurs face each day. If you’re ready to level up your business the right way, click here to learn more about the Launch Legally Incubator and get started enrolling.
I look forward to welcoming you!