LLCs: Business formation

If you are starting your own business, you are probably wondering what the right legal steps are. Sadly, there is no one answer. It all depends on what you are about to do! However, there is one thing for certain: you want to protect your personal assets from any business liability.

There are several ways to structure a business, and varying registration requirements for each. Let’s focus on only one type: the famous “LLC”

A limited liability company (LLC) is a legal entity that can have one or more business members. You must register in the state you intend to do business in. In Oregon, your business name must be available and you must have a brick and mortar address to link to that registration. It cannot be a PO Box. This information will be public therefore, a lot of people working from home do not want their personal address to be known or associated with the business. The easy solution is to hire a Registered Agent company which will provide you with an address you can use in exchange of a yearly fee.

Once you register your LLC with the secretary of state, you will be ready to go live! You should start doing business with your LLC name. At the same time, you should apply for a business bank account in the name of your business. Every payment you receive for your business should be deposited to that account. We don’t want you to mix your personal account with your business account! Do not commingle funds and keep everything separate.

Because the LLC is a separate legal entity than yourself, if a client were to file a lawsuit against the business, your personal assets shouldn’t be affected. This is why an LLC gives you a “shield” of protection.

If you are ready to form your single member LLC or a partnership LLC, let’s talk!

Request a free 30 minute consultation and let’s take your business to the next level.