New business owners often ask themselves if they need to form an LLC. Here’s what business owners need to know about forming an LLC and the protection it provides.
Just this month the Associated Press reported on the latest Census Bureau findings that less Americans are starting their own companies which is leading to worry among Goldman Sachs and other economists.
“Declining startup rates,” John Dearie, founder of the Center for American Entrepreneurshipm, “amount to nothing less than a national emergency.”
Because small businesses are the backbone of America’s economy and real estate construction is also lagging, now is the perfect time for real estate investors to start up. This might seem counter-intuitive but in actuality, the investors who smartly enter the game the right way now will be poised for the biggest rewards. This is also true for investors and even entrepreneurs already in business but who are operating as sole proprietors who haven’t taken the leap yet.
Why do Real Estate Investors & Entrepreneurs Need to Form an LLC?
Thousands of new businesses are formed every single day, and they come in all shapes and sizes. Because of the gig-buck economy & our modern electronic age, there are a plethora of new business entrepreneurs that should be thinking about business creation but aren’t because they lack the education and information on why incorporating is needed. Blogs, podcasts, MLMs, online stores, online marketing, and consulting businesses of all types are operating like the Wild West. While this has allowed millions of people to start their own freelance businesses and work remotely but it’s also diluted the workforce and made it harder for the best contractors to compete.
Why Forming an LLC Helps “The Little Guy”.
While it does cost some money to form and maintain an LLC business structure, and the price depends on the state where the business is located when forming an LLC considering the benefits the cost is minimal. Many people start a business and immediately think it’s too small to warrant forming an LLC. People often think of larger, more established businesses when they think of LLCs — kind of like smaller corporations, but much larger than a sole proprietorship or two friends going into business together. But the truth is, forming an LLC may be the best decision a small or new business owner can make, and there are plenty of reasons why — including legal protections, tax savings, flexibility, and a simple structure.
Do all real estate investors and entrepreneurs need this type of structure? Not all but most.
Basically, if a real estate investor has a business or is about to start one, and they own anything — whether it be a basement full of inventory, their home, or even a vehicle — a real estate investor needs the protection forming an LLC provides.
If you are an investor or entrepreneur looking to protect your current business or start a new one, one company that employ experts in providing this type of cutting-edge and modern legal strategy specifically for investors and entrepreneurs is Leafy Legal Services.