Many small business owners ask whether they need to form an LLC. The answer depends on your situation, but for most people running a business with any risk of liability, an LLC is a sensible way to protect personal assets.
What an LLC Does
An LLC creates a separate legal entity for your business. Your personal assets—home, car, savings—are generally shielded from business debts and lawsuits. If the business is sued, creditors generally cannot go after your personal property. An LLC also gives your business a more professional appearance and can simplify tax reporting.
When an LLC Makes Sense
If you have a business that could be sued (consulting, contracting, retail), have partners, own property or equipment used for business, or want to appear professional—an LLC is often worth it. Ohio's filing fee is $99, and compliance is relatively simple.
When You Might Not Need One
If you are doing occasional side work with minimal risk, you might operate as a sole proprietor initially. But once you have real revenue or liability exposure, forming an LLC is usually smart.
Jwayyed Law LLC helps Ohio business owners with LLC formation, operating agreements, and related matters. Call (614) 285-5482 or schedule a free consultation today.
This article is for informational purposes only and does not constitute legal advice. For legal counsel regarding your specific situation, contact Jwayyed Law, LLC.
