This Halloween, Dress Your Business for Success

There’s nothing scarier to a small business owner than to find her business does not have adequate liability protection, because she hasn’t properly registered her business with the state.

However, there are thousands, if not millions of solopreneurs, freelancers, and small business owners taking a huge risk by not incorporating or forming an LLC.

Forming an LLC is one of the smartest decisions a solopreneur can make. It provides limited liability protection in the event of a lawsuit, flexible taxation and ownership structures, and the credibility of being a registered entity with the state.

By not registering with the state and forming an LLC, you expose yourself to the frightening possibility of losing personal assets in a lawsuit.

Forming an LLC isn’t scary, either. It involves appointing a registered agent, filing the appropriate form(s) with the state, and setting up company records. You also might need a business license or other tax IDs.

In most states, forming an LLC does not cost much. Forming an LLC in California or in Massachusetts are two exceptions to this rule.

Regardless, the investment in forming an LLC is usually worth the limited liability protection and credibility having a legal entity affords.

Most legitimate businesses have some sort of legal structure, and yours should too. Think of it this way: you wouldn’t show up to a Halloween party without a costume, and you certainly wouldn’t start a serious business without some sort of liability protection.

So, while some of you are donning superhero costumes this Halloween, the rest of you should be sporting the one that truly matters: a corporate veil.

That way, you’ll truly be dressed for success.

Harbor Compliance specializes in not only LLC formation, but also in helping your business stay compliant as you grow. Visit our service page to get started!