Whether you’ve just recently started out as an entrepreneur or have been in your business for over a decade, you have at some point had a vision of what sort of structure you wanted your company to be. In the case of many small businesses, owners tend to be sole proprietors in which they and their business is one and the same.
I did not take this step to incorporate till much after I started my small business, because I always saw it as a side-gig, which happened to grow over the years. However, if you are serious about the little start up that you began a couple of years (or any other business for that matter) on a whim, and you see it having a long-term future, it may be a good idea to consider a forming a Limited Liability Company (LLC).
It is important to remember that not all types of businesses can operate as LLCs. So, if you are planning to start your business or are currently in the banking, trust, and insurance industries, for example, you are prohibited from forming LLCs. Moreover, certain states, prohibit professionals such as architects, accountants, doctors, and licensed healthcare workers from forming LLCs. Be sure you check your state laws on registration process and fees as these vary from state to state.