Law Outside the Box

If you’re a small business owner or you have thought about becoming a small business owner, most likely you are familiar with the term LLC.  Simply put, LLC means Limited Liability Company and the LLC is the most common form of small business ownership in Minnesota today.  When a small business owner is looking to take the step from operating as a sole proprietorship or assumed name (DBA) to business entity, I recommend the LLC in almost every situation.

LLCs are the best entity option for most small businesses

LLCs offer many advantages over other ways to run a business such as partnerships, sole proprietorships, assumed name, DBAs (doing business as), S-Corporations and C-Corporations.

Two advantages worth noting:

(1)        The LLC avoids the double taxation problem associated with C-Corporations

(2)        Unlike with an assumed name, a DBA (doing business as) or a sole proprietorship, an LLC offers limited liability protection from your personal assets

Of course the key to successfully running an LLC is properly managing it both from a legal and accounting standpoint.  In the coming weeks, we will explore keys to successfully starting and running your LLC.