Having an LLC in your name tells potential customers and clients that you’ve taken that extra step of registering an LLC. This can help to make your business look more reputable or legitimate, which can be an important consideration especially when your business is just starting out.
Should you include LLC in your business name?
You should always include “LLC” on all invoices, contracts, leases, legal records, tax returns, letterheads and other purposes. In most states, it is required to add “LLC” to your business name when forming your business, filing for an EIN or paying taxes.
Why should I name my LLC?
“Creating an LLC with my name was the perfect way to merge my unique identity with my creative business, while maintaining the legal protections that an LLC offers.” … It also makes sense if the owner has already established a personal reputation or brand with their name already.
Should I name my LLC after myself?
Don’t Name a company after yourself, unless…
According to Alexandra Watkins, founder of Eat My Words, a company that creates business names ideas for clients, you should not name your business after yourself. … They just aren’t memorable, imaginative names.
Why should I register my business as an LLC?
Reasons you might want an LLC include: Limiting your personal liability for business debts. With an LLC, only the assets owned in the name of the LLC are subject to the claims of business creditors, including lawsuits against the business. … For most people, this is the most important reason to form an LLC.
Do I have to put LLC on my logo?
In short, the answer is no. In fact, none of your branding/marketing needs to include “LLC,” “Inc.” or “Ltd.” If it is included, this may look amateur. … Logos are an extension of a company’s trade name, so marketing departments don’t need to include legal designation.
What are the benefits of opening an LLC?
Advantages of an LLC
- Run Your Own Show. Entrepreneurs are self-starters who prefer to chart their own courses. …
- Limit Your Personal Liability. …
- Avoid Double Taxation and Pass-Through Deduction. …
- Less Administrative Hassles and Paperwork. …
- Flexibility in Sharing Profits.
What is the downside to an LLC?
Disadvantages of creating an LLC
Cost: An LLC usually costs more to form and maintain than a sole proprietorship or general partnership. States charge an initial formation fee. Many states also impose ongoing fees, such as annual report and/or franchise tax fees.
What if my LLC made no money?
Even if your LLC didn’t do any business last year, you may still have to file a federal tax return. … But even though an inactive LLC has no income or expenses for a year, it might still be required to file a federal income tax return. LLC tax filing requirements depend on the way the LLC is taxed.
How much does an LLC cost?
The main cost of forming a limited liability company (LLC) is the state filing fee. This fee ranges between $40 and $500, depending on your state. There are two options for forming your LLC: You can hire a professional LLC formation service to set up your LLC (for an additional small fee).
What is better LLC or sole proprietorship?
One of the key benefits of an LLC versus the sole proprietorship is that a member’s liability is limited to the amount of their investment in the LLC. Therefore, a member is not personally liable for the debts of the LLC. A sole proprietor would be liable for the debts incurred by the business.
Whats a good name for an LLC?
Typically, your business’s name must end with the words “Limited Liability Company,” company” or “Limited.” Or you can use abbreviations like “LLC,” “L.L.C.,” or “Ltd.” Usually, you can even opt to abbreviate the words “Limited” and “Company” as “Ltd.” and “Co.” (Most people just stick with “LLC”.)
What is an example of a LLC business?
Many well-known companies are structured as LLCs. For example, Anheuser-Busch, Blockbuster and Westinghouse are all organized as limited liability companies.
Can I start a business without registering it?
You are allowed to operate a sole proprietorship without registering, but you are required to register with your local government to collect and file state taxes. There is nothing wrong with running an unregistered business as long as your business is legal and meets all licensing and tax requirements.
What are the pros and cons of an LLC?
Pros and Cons of Limited Liability Corporations (LLC)
|The Pros||The Cons|
|Members are protected from some (or sometimes all) liability if the company runs into legal issues or debts.||Unless you are running the LLC alone, the ownership of the business is spread across its members (this can also be a pro)|
Can I use my LLC to buy a house?
An LLC is a business entity with its own assets and income. As such, it can purchase real estate, including a house or business premises, for any reason outlined in its articles of organization.