Do I really need an LLC?
There is a liability risk in just about anything you do. When I taught Business Law the example I would always give my students was, if you are having a lemonade stand, you probably don’t need an LLC. There is very little risk of liability and likely no complicated buy out or pay out structures. However if you are creating an app, probably yes you will need some kind of protection for that kind of business.
The first inquiry is always, tell me about your business. What kind of business is it?
Another factor is how many people are currently involved in the business. If you are a sole proprietorship, you might not need an LLC.
LLC, stands for limited liability company. In Massachusetts you can establish and LLC by filing paperwork with the Secretary of State’s office. The filing fee to do so is currently $500.00 per year. There are also other important ancillary documents that you may need based on your situation.
The main feature of an LLC is that is provides you with limited liability. For example if you start up a graphic tee-shirt company with a couple friends and you want to sell online, an LLC might be a good choice for you. You can organize the business based upon the different roles you will each have with the company, and you can get liability protection. Let’s say someone places an order for $5,000.00 worth of shirts, which they plan to resell for a profit. You cannot fulfill that order. They sue you. All that they can sue you for is what the LLC owns. Any assets of the LLC are subject to taking. All personal assets are not (in most cases—unless you are negligent).
We work with a variety of businesses and would be glad to meet with you to discuss which entity is right for your business. Call the firm at 978-539-7500.