DO YOU NEED AN LLC FOR AN ONLINE BUSINESS
LLC: What You Need To Know About Limited Liability Companies
As an entrepreneur or business person, the best thing you can do is protect yourself. One of the best ways to do this is to create a limited liability company (LLC). A limited liability company gives business owners peace of mind by ensuring that they are not personally held responsible for obligations, liabilities, and debts of the company. However, navigating the rules of LLCs, like determining how to find out if a business is an LLC, can be confusing. To help make understanding LLCs easier, we’ve broken it down for you.
What is a Limited Liability Company?
A limited liability company (LLC) is a business structure. That means it is the type of business you have e.g. sole proprietorship, partnership, C Corp, and S Corp. By creating this structure, LLC owners are able to protect their personal assets from business debts and obligations. This means personal liability from creditors is limited. It also allows members to have their own capital accounts, meaning they don’t have to equally divide profits.
How Do You Find Out If a Business is an LLC?
To find out if a business is an LLC, you can look it up on the website of the state they are registered in or do a company search on a website such as Dun & Bradstreet. For example, if a business is located in California, you can search the California Secretary of State website. If the business is registered as an LLC in California, you should see the legal name of the LLC, the file number, the status of the LLC, the address of the LLC's listed agent for service of process, the date of formation (or conversion, if applicable), and a list of the LLC members.
How Do You Know if My Business is an LLC?
If you are starting a business, you can go through the steps from your state to create an LLC. You will know if you have formed an LLC when you have filed the Certificate of Formation with your state agency and paid the registration fee. Once you have done this, you will receive the articles of organization that certifies the LLC has been formally created. At this point, you will know that your business is an LLC.
FAQ
Q: What is the main benefit of a limited liability company?
A: The main benefit of a limited liability company is that the members have a layer of protection from business debts and obligations. This means their personal assets are safe from creditors and individuals who may be owed money from the LLC.
Q: How do I know if my business is an LLC?
A: You will know if your business is an LLC when you have filed the Certificate of Formation with your state agency, paid the registration fee, and received the articles of organization that formally creates the LLC.
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