Starting a business is an exciting endeavor, and there are many ways to establish your company legally so that you can begin turning a profit. Navigating all of the options and determining the best one can be a challenge, but many business owners elect to form their business as a limited liability company — also known as an LLC. This type of company is beneficial for a number of reasons.
You should consider the following three reasons to see whether it might be the right option for your business, too. Regardless of how you choose to establish your business, consulting with a lawyer can help you avoid potential pitfalls.
1. Adaptable to varying needs
One of the greatest benefits of an LLC is its adaptability to a range of different business needs. Whether you are operating your business with two employees or managing a large company with hundreds of associates, you can elect to write your operating agreement however you see fit when your company falls under the classification of an LLC.
2. Protection for real estate assets
According to Forbes, forming a business entity such as an LLC is one way to protect the real estate assets you have invested in. If you own the property your business operates out of — or any other property, for that matter — you can protect it by placing the deed in your company’s name. This protects you from personal liability and makes the investment more secure, too.
3. Keep assets separated as necessary
Keeping assets separated is a key business strategy that can save you a lot of trouble in the future. Forming a single LLC is wise, but you can protect assets strategically by separating them into separate LLCs. If any financial hardship were to affect your business in the future, separating your assets into multiple LLCs could prevent creditors from collecting against your most valuable assets.