Many people start businesses but don’t think about properly and legally setting it up or they think that they’re not big enough to do it. It doesn’t matter if you’re setting up a side gig for extra cash or creating the next giant corporation or LLC, there are many reasons to set up a small business, regardless of the size and purpose of it.
Here are three benefits to setting up a small business:
- Legal separation of assets: Setting up a small business entity protects the owner’s personal assets. If for some reason the business is sued, it’s the corporation or LLC that takes the hit, not the owner. It’s also easier to set up a separation between personal and business finances.
- Sets the business up for easy growth: One never knows when a business is going to click and hit a growth spurt. We’ve seen many business owners get caught in this burst of success, needing to grow quickly and not being prepared to do so. Setting up a corporation or LLC officially will make it so much easier to grow the business as it needs to grow rather than have to stop to file paperwork. When the business hits a growth bump, you’ll want to be able to quickly and legally hire employees, rent a space, set up wholesale accounts, and anything else the business needs.
- Makes it legit: Having proper paperwork filed for a business shows that the owner is serious about the services and products they are providing. It says to the customers and clients that they are serious about the business and are true professionals. It gives customers ease of mind that it’s not a fly-by-night company that just printed up some pretty fliers, but that it’s a company that intends to become a part of the community.
Thornton Law firm helps people properly set up businesses in Durham, NC so they can focus on success ahead. Contact us to start your small business set up.