Success in business isn’t just about day-to-day operations, although, of course, that’s particularly important. Business wins are also about decisions that are drier and less interesting. One of these is the kind of structure a business should adopt. North Carolina entrepreneurs should be aware of the advantages of an LLC structure.
Limited liability companies are found across the country. The regulations for this kind of business are mostly defined at the state level. In general, most kinds of businesses are eligible to register as an LLC. The most common exceptions are in the world of finance. Insurance companies and banks are two examples of entities that aren’t allowed to set up as LLCs.
In general, most kinds of businesses can use the LLC classification. This includes sole proprietorships, corporations and other business formations. LLCs can be set up by already-existing LLCs too. The main advantage of registering as an LLC is to protect the personal assets of the owner and officers of a company.
For example, consider someone who owns a grocery store. If a customer slipped, sustained an injured and sued, he or she would be entitled to various types of damages. If the owner of the store had set up as an LLC, his or her home would be protected, and the plaintiff couldn’t issue a claim against that.
Entrepreneurs need to think about all the challenges business owners have to deal with, and that’s a tall order. It’s always a good idea to have an attorney with plenty of business law experience on retainer. A lawyer may provide the best advice about how to set up a business and the challenges to be aware of.