Entrepreneurs and business owners have to incorporate their business to actually be in business. It is one of the essential steps that some entrepreneurs do not remember. We asked some entrepreneurs how they incorporated their business and why they meade that decision:
Related Post: Entrepreneurs, Don't Forget to Incorporate!
LLC
I actually “organized” my business – that is the word used for forming a limited liability company. The reasons are simple, the LLC is useful because most of the organizational rules are brought about by agreement of the members not by the dictates of state law on incorporation. Say, one member wants to own 90% of the business but only receive 10% of the annual earnings. This can be done by writing that into the Operating Agreement for an LLC, but to do the same thing with a corporation would require an amendment of the Articles of Incorporation or Certificate of Incorporation, depending on the state.
Thanks to James Wilson, Wilson Law Group PLC!
Related Post: How to Choose Which Entity is Right for You?
Inc./LLC Status
Just received confirmation of Inc. / LLC status from my attorney. A sole proprietorship wasn't the right fit, we needed the added security of being Inc. although with the changing laws the corporate vail isn't what it used to be.
Thanks to Lisa Thornton, IGWT Enterprises, LLC!
Related Post: Legal Tips for Entrepreneurs
LLC
We incorporated in 2006 as an LLC. Because we are based in CA we did it in CA. It was done primarily because we were a partnership and wanted the extra protection.
Thanks to Gwen Hawver, Vision Interface!
Image: FreeDigitalPhotos.net
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