The Thrill of Starting Your Own Business
Starting a business is a little like jumping out of a plane.
Do you have a parachute?
Do you have a partner?
Are you jumping all alone?
Taking that plunge is exciting… and a little bit scary.
If you’ve never set up an LLC (Limited Liability Company) or a corporation before, there are certain things you need to know.
An LLC serves an important purpose. If the LLC fails to protect you—especially when you need it the most—the consequences can be severe. A failed LLC might mean you lose your wealth and your assets. It’s not an easy fix if you don’t get it right the first time around.
For most entrepreneurs, setting up an LLC or a corporation is a totally new concept. They’ll read books. They’ll watch LLC video tutorials. Or, they’ll purchase an inexpensive LLC “kit” online. They’ll “pack their own parachute,” so to speak, not really sure if this will offer the protection they really need.
Would you jump, not knowing if your parachute would protect you?
Lawyers study law to know how to make use of the rules in order to protect you against liability. While there’s no way to shield your business from every scenario, an attorney can significantly increase the likelihood that your LLC will protect your personal assets.
Some businesses use a C.P.A. or an accountant to file an LLC or corporate entity. Accountants and C.P.A.s certainly have their role for taxes, payroll, bookkeeping, and IRS audits. They can always offer helpful professional advice, but when it comes to an LLC, do you want the person setting up your business structure to be trained in accounting or trained in law? At the end of the day, your accountant isn’t licensed to practice law. A lawyer is.
When you jump out of a plane, you want a trained and reputable instructor jumping out with you. And, when you set up a business, you want a skilled and licensed attorney who understands LLCs.
Are you ready to make the jump? If you are, call now and connect with our knowledgeable legal counsel. We’re the professionals and we’re here to help.
The Paper That Comes Back From The Secretary Of State Is NOT Your LLC!
Business owners sometimes have the impression an LLC or Limited Liability Company is the piece of paper the State returns when you pay the filing fee. They file for the LLC, pay the fee, and think their personal assets are safe . . . protected!
Education comes at a price. For some, the learning curve costs them everything! They learn the certificate the State gave them wasn’t an LLC at all.
Maybe an illustration will help make the point. When you buy a house, there’s a deed given to you that shows you own the property. Now it’s pretty obvious the deed is simply a piece of paper, not a house. When the storm comes, you don’t hold the paper over your head to protect you and your loved ones.
A house consists of a foundation, framing, insulation, wiring, and – critically when it rains – a roof. LLCs have a structure also.
The certificate the State gives showing an LLC has been formed is just a piece of paper. It’s sort of like the deed in that the paper represents a legal status.
The LLC certificate is not a shield that protects your assets any more than the deed keeps the water off of you in the rain.
Your business is built on parts that fit together to create the wall between the business liability and your family’s assets. The LLC certificate is only one part of the business structure. Without all the parts properly assembled, the LLC offers no more protection than a house without a roof.
If you have been using the LLC certificate as a paper shield, you should schedule an appointment now by clicking here. Otherwise, your LLC may not protect your assets the way you planned.
We help Oklahoma businesses operate within the law!