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People of all walks of life I have different kinds of personal businesses. If you have been in business for a while, you must have heard of LLCs (Limited Liability Company) and wondered how different they are from other types of companies. As the name suggests, LLCs are companies that should you as the owner, from the abilities that come along with business operations. Unlike in corporations, you are not directly liable for business debts and other unfavorable business factors in an LLC. That does not mean that you do not own the company though.
Business operations can result in profits or losses. In the case of losses, you might have to supplement your business with external funds in order to keep it running. There are a lot of risks that come along with business expansion. Registering your business as an LLC is a smart way of assuring that you do not lose your personal assets if the business starts experiencing challenges.
In the sections below, we are going to explore how you can start an LLC, and how that can help expand your business beyond leaps and bounds.
Registering an LLC
Due to the nature of interactions and operations that LLCs engaging in, you cannot just wake up one day and decide your business has become an LLC. Different authorities in different jurisdictions have different minimum criteria for a business to be considered eligible to be registered as an LLC.
In addition, there is a process that needs to be followed in order for your business to be registered as an LLC. In as much as you can go through the process yourself, many people find it bureaucratic and tedious. To avoid the hassle, you can seek the services of a business consultant such as swyftfilings.
Having said that, here is an outline of the process through which you can register an LLC.
- First, you need to ensure that you have satisfied the set eligibility criteria for the business you are in. Different businesses face different regulations when it comes to registration as an LLC.
- From there, you really need to decide on a company name. The company name is then searched through a directory of company names that have already been picked to ensure that it is not similar to any other.
- You then need to prepare articles of incorporation. Articles of incorporation, are documents that detail what your company is all about and which activities it will be engaging in. It also details the ownership structure of the company.
- The next step is to file the articles in cooperation and all the other required documents with the Secretary of State. The office of the secretary of state is going to go through the documents to ascertain that everything is in order, after which you will be issued with a certificate of incorporation.
This process is much more seamless when you allow business consultants such as swyftfilings to take care of it. Most of them also offer business operations guidance and support.
Benefits of LLCs
So, what benefits will your business get from being registered as an LLC? We’ve already mentioned above, that an LLC shoulders you from the burden that comes with a non-performing business. There are a couple more benefits that come when you register your company as an LLC.
First, your personal property and assets are protected from seizure in case the business runs into debts. You are not personally liable for the performance of the business. LLCs also enjoy very minimal formalities and regulations when it comes to their registration and operations. LLCs are only required to file annual reports for the applicable state-level taxes.
As mentioned earlier, the advantage of using consultants such as swyftfilings is because they offer support beyond the registration stage. Because of dance offer support to ensure that your business or remains compliant with the set regulations
Also, there are different types of LLCs. They include;
- Foreign managed
- Single managed
- Multiple managed
The names are quite self-explanatory. Consultants will come in quite handy at the stage where you have to choose the type of company you need to register.
How long does it take to register an LLC?
The normal process of registering an LLC takes anywhere between 7 and 10 working days. As mentioned earlier, the office of the secretary of state has to go through the database of many registrations to ensure that your registration is not similar to any other. If you need your registration to be expedited, you will be required to pay a particular fee and your registration will be reviewed before others that are on the queue.
Having learnt all the above, having an LLC does not mean that you can’t be reckless with your business operations. You are still, in one way or another, liable for the operations of the business and its legal issues. You will be held answerable for any crimes that are committed in the name of the business. If if there is enough reason to believe that you are involved in any criminal activities in the name of that company, you might be criminally implicated.
It is quite easy to get misled when it comes to the regulations that govern the operations of LLCs. That is why it is always important to have the guidance of an experienced consultant so that they can put you on the road to doing business profitably.
LLC is the way to go when you are a startup hits a certain milestone. If you’re feeling confident about the business you want to engage in, or if regulations require so, could start right away with registering an LLC. Having your business as an LLC comes with a lot of flexibility, and it gives your business room to maneuver and grow beyond your wildest dreams.
Talk to swyftfilings today to find out more about how you can register your LLC it is one of the best if not the best, business consultants out there. Apart from LLC registration, swyftfilings will guide you through many other aspects of starting, running, and growing a business.