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.
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.
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
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.