If you’ve ever considered starting your own business, then the thought has probably crossed your mind: What’s an LLC, and do I need one?
LLC, which stands for limited liability company, is a great option for small business owners looking for a way to get legally established.
Not only does this business structure make your company sound more official, but it also comes with certain legal benefits (like liability protection) as well as tax benefits for business owners.
We talked with seven experts — from lawyers to financial coaches — to help us understand the ins and outs of an LLC. Their (free!) advice will help you decide if an LLC is right for you.
What Does LLC Mean?
A limited liability company is a way of organizing your business that also comes with a few extra perks. Tony Grenier, CEO of Instrumental Global, an online music instruction site, breaks it down for us.
“A limited liability company (LLC) combines the best of a sole proprietorship, C Corporations, and partnerships,” Grenier said. “It basically offers flexibility in management, division of profits and losses, as well as taxation benefits.”
Unlike other business structures, limited liability companies are also relatively easy to get started, especially for solo business owners
“An LLC is a type of business in which only one member or employee is required, and that individual can participate in the business’s daily operations,” said financial coach Annette Harris of Harris Financial Coaching.
Another unique aspect of LLCs is that
