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You are here: Home / LLCs / One Reason To Set Up An LLC — It’s Good Marketing

Oct 14 2019

One Reason To Set Up An LLC — It’s Good Marketing

Think about it; setting up an LLC tells your customers a lot about your company. Business coaches regularly preach marketing! Without it, your business isn’t likely to succeed. So, tell potential customers that you mean business and set up an LLC! You’re serious about your company and what you’re about.

One Reason To Set Up An LLC -- It’s Good Marketing

Recently, we have been helping clients evaluate the type of entity best for their business. (Entity means the type of legal structure such as a corporation, partnership, LLC, etc.) The clients were forming a new company in the service industry. As we discussed the pros and cons of an LLC versus a corporation, the decision was a pretty close call. Arguments could be made for using a corporation over an LLC because of the nature of business and the intentions of the entrepreneurs.

One Reason To Set Up An LLC -- It’s Good Marketing

In the end, the clients decided the right choice was to set up an LLC. The deciding factor was marketing. The prospective customer base of the new company was used to seeing “LLC” . The majority of the other companies competing for the same business in the industry used “LLC”. While there are times you want to set yourselves apart from your competitors, you want those differences to be things that make you the better value.

Image and reputation are built slowly and in steps along the way. Similarly, trust with new customers usually takes even longer. Therefore our clients felt the use of an LLC gave a better image than a corporation. If the anticipated customers were used to seeing competitors with an “LLC”, then having to waste time (and possible customer conversions) explaining they picked a corporation wasn’t a good use of marketing time.

How about your company?

Why would you choose an LLC versus a corporation? Contact us if you would like to discuss which entity fits you best.

Written by buckmanlaw · Categorized: LLCs

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