The Ultimate Guide to Creating an LLC, Paying Yourself and Keeping Your Options Open

Let’s start with the bad news. If you want to start a business and launch your products or services under your name, you can’t do that as an LLC. That’s because most states won’t recognize an LLC with a personal owner as its only member (also called a single-member limited liability company). Any business needs to be set up in a way that protects its owners from legal liabilities and financial risks. That’s why it is necessary to create an entity that will serve as your business partner and shield you from any potential consequences. As we all know, there are different types of entities available for small businesses, and choosing the right one takes time and research.

What is an LLC?

An LLC is a hybrid business structure that combines the pass-through taxation of a sole proprietorship or partnership with the limited liability of a corporation. That is why they are sometimes referred to as “Lemonade stands run like corporations.” Limited liability companies are business structures that protect the owners from financial risk. It is a type of company that has the liability protection of a corporation with the tax structure of a partnership. In other words, an LLC is a business structure that offers limited liability protection to its owners. This is achieved by…