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Unread 08-27-2013, 01:47 AM   #5
bizznessman
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Quote:
Originally Posted by pwa View Post
pretty much what they say but on the LLC check with your tax guy/lawyer. For me the lawyer said any lawyer worth his weight will eat thru that. LLC not what it used to be :( But consult the experts in your area

pwa

I agree with pwa's cautionary statement. We had an attorney that specializes in LLC formation (KS specific) create ours. It cost more (approx $3K) but it is as iron clad as any LLC can be. LLC's can still work well if formed properly.

NOTE: If you form it "yourself" then be aware that you could easily miss crucial aspects and not be protected as much as you might believe.

The most crucial thing with any legal entity is you need to follow all the rules associated with that form of legal entity. Meet deadlines for State filings. Keep ALL funds separate from personal funds. You must always be aware of how you are presenting yourself "as the LLC and not yourself personally". These are the three most common items that cause breach and will allow an astute attorney to pierce the veil of the LLC and come after your personal assets.

Of course you could incorporate. Corporations are more personal asset protection secure but come with more regulation, a higher tax rate for retained earnings and much more paperwork.

Whatever you do, DO NOT operate as a Sole Proprietorship unless you want to risk ALL of your personal assets....insurance or not.
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