As a small business owner, you will faced with many choices to make and choosing whether or not to form an LLC can be a very imperative decision. Asset protection companies will market to new business owners on a regulars basis stating that an LLC is always the best option, however, depending on your business type, this may not always be the most advantageous route to take. There are some business entities are may be better established as a sole proprietorship because as the additional expenses that can be incurred as an LLC do not provide any major benefits compared operating as a sole proprietor.
These two business models can make a major impact in how you operate your company from a legal, tax and management stand point. There are a multiple factors that will be beneficial to open up an LLC instead of operating as a sole proprietorship, which include the following:
- You want to grow your business to more than one owner in the future, which more convenient with an LLC
- You want to protect your personal assets from possible financial and legal liability
- You want to utilize any applicable local, state or federal tax benefits that come with forming an LLC to your advantage.
- You will be able to establish business credit in a way that you couldn’t with a sole proprietorship.
If you require assistance setting up your LLC with Employer Identification Number (EIN), you can contact Nevada Small Business Consulting today at (702) 758-4691 to schedule a no-cost initial consultation. We will do the work to make your business official and help you to form an LLC! You can click the following link to view our many 5-star Google Reviews.