Having grown up watching my father and uncles run their construction business, I had an early exposure to the world of entrepreneurs. As a result, I have always enjoyed the freedom and challenge of having and running my own business as well. There was a time when starting a company was no easy task. The process usually involved a lawyer, took much longer and was far more expensive. You can still hire a lawyer to setup your business for you today, but luckily for us, there are online services that can take care of everything in a lot less time.
To start with the basics, LLC is a “Limited Liability Company,” and is a business entity that stands in the middle between a sole proprietorship (i.e., the smallest/simplest business form) and the corporation (i.e., the largest/most complex one).
As a small business owner and blogger, the idea to establish a LLC did cross my mind once when it was being discussed by a group of small to medium business entrepreneurs. At the time, I dismissed the notion by telling myself that my business didn’t generate as much income to justify it. Additionally, I was told that I should only take this step when my running costs (i.e., administrative expenses plus taxes) for the LLC will be the same as that of the sole proprietorship.