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Wise to establish a LLC for virtual services?

by Actionrat
2 replies
For those of us that are offering virtual services (SEO or reputation management for example), is it wise to establish a LLC in our given state? I certainly can see how it would help in closing a deal with a prospective client, if you are asking them to make payments to my company as opposed to me as a individual. I believe there are tax and other advantages as well.

What do you guys think? Is this something that i should be doing ASAP?

I believe its a few hundred dollars in my state (LA), and without any clients at the moment, its difficult for me to determine if this is a wise idea or not.
#establish #llc #services #virtual #wise
  • Profile picture of the author bob ross
    You don't need an LLC to be able to cash checks written to your business, you only need to register a DBA (doing business as) at your county level. That will allow you to do business under a fictitious name. Technically the business is you, called a sole proprietorship, so you just need a DBA to operate under a name other than your own.

    The disadvantage is that as a sole proprietorship, you're personally liable for everything. If a client wanted to sue you, they would be suing you personally. An LLC would help protect your personal assets. None of us are really qualified to give you direction on this, because you should be talking to a lawyer and CPA but if I was you, I'd get a client or two as a DBA then open an LLC as soon as you know the business is moving forward.
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    • Profile picture of the author Actionrat
      Thats exactly the information I was looking for. Thanks.
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