When you form a business, your own personal assets could be at risk if there is a lawsuit or to creditors if your business goes bankrupt. However, there is a form of incorporation that can help protect you from liability that you should consider when choosing your business form.
If you have a business, you should consider forming a limited liability corporation. An LLC is similar to a corporation in that it protects your own assets from the liabilities of the business, but it is much easier to establish than the standard C-corporation. Your own liability is limited to that which you have contributed to the business and the business assets. If your business commits a tort, or if the company goes bankrupt, nobody can come after you personally. If you have a sole proprietorship or a partnership, you can be personally liable, and your credit could also be destroyed. An LLC would shield you from most types of liability (except for illegal acts or your own personal negligence).
An LLC is relatively simple in practice. You would need to file with the state and draft an operating agreement for your business. Then, you would need to file an annual report and pay a small fee. You would not need corporate bylaws, nor would you need some of the extensive documentation required of corporations. An LLC is a very fitting business form for a startup company. You can always change your form of incorporation later to fit your needs if your business grows.
Contact a Miami Entity Formation Attorney
A Miami entity formation attorney at Daniel D. Diaz, PA, can counsel you on the benefits of an LLC and could help you incorporate and establish it. Call us today at [number] or message us online to discuss your business and legal needs.
