As I’ve mentioned in the past, my wife and I are in the process of separating our business and personal finances. When I talk about “business, ” I am (of course) talking about income from online publishing (including this site). Well, last week we took what is perhaps the biggest step toward creating a separate business identity — we registered a Limited Liability Company.
Although the process varies from state to state, forming an LLC is typically pretty easy. In our case, we were able to register online through our state’s website for just $100, and we had an official (albeit electronic) copy of our Articles of Organization in our hot little hands just a day later.
In most cases, there’s no real reason to use one of the many online business registration services. In fact, if you’re worried about making sure that everything is in order, I’d suggest that you spend a few bucks on a consultation with a local attorney that specializes in business law rather than settling for a cookie-cutter solution.
So why did we decide to form an LLC when we could’ve simply continued handled things as a sole proprietorship? The main reason is that we want to draw a clear line between our business and personal lives. In the event that we ever run into any legal issues, we’d like to insulate our personal assets from our professional liabilities. Given the relative ease with which you can establish an official business presence, it’s a no-brainer.