If you’re a business owner in North Carolina, you might be wondering if setting up an LLC is worth it.
The short answer is yes!
An LLC, or a Limited Liability Company, provides a wide range of benefits for small businesses, including liability protection, tax flexibility, and customer credibility. In this blog post, we’ll explore these three reasons why setting up an LLC in North Carolina is essential for your business.
If you have more questions or need help forming and protecting your business, Apple Payne Law can help. Contact our Kernersville business lawyers today to get started.
One of the primary reasons to set up an LLC is to protect your personal assets from business liabilities.
This means that if something goes wrong with your business and you are sued, your personal assets, such as your home or car, won’t be at risk. With an LLC, your personal assets are separate from your business assets, which provides a layer of protection.
In North Carolina, it’s challenging to pierce the corporate veil, which means it’s difficult for someone to sue you individually for something that happened in your business. However, to ensure that your LLC provides adequate protection, it’s important to follow all the rules and not commingle funds.
As a sole proprietor, you have fewer options when it comes to tax deductions and will be subject to self-employment taxes. However, with an LLC, you have the option to elect S-Corp taxation, which allows you to deduct business expenses and reduces the amount of self-employment tax you pay.
By setting up an LLC, you’ll have more control over your taxes, which means you’ll have more money in your pocket. It’s important to note that LLCs are taxed differently than corporations, and the tax requirements can be complex. Consulting with a Kernersville business law attorney can help ensure you’re making the right tax decisions for your business.
When you have an LLC, you appear more professional and established to your customers. It shows that you take your business seriously and are committed to providing quality products or services.
Having an LLC also makes it easier to market your business. When customers search for your business on Google, they’ll see that you’re a legitimate company with reviews and a professional website. This will help you stand out from competitors who don’t have an LLC.
Overall, setting up an LLC in North Carolina is a smart decision for small business owners. Not only does it provide liability protection and tax flexibility, but it also gives you credibility with your customers.
If you’re considering setting up an LLC, contact a Kernersville LLC formation lawyer to ensure that it’s done correctly.
What are the requirements for setting up an LLC in North Carolina?
To set up an LLC in North Carolina, you need to file Articles of Organization with the North Carolina Secretary of State. You’ll also need to choose a unique name for your LLC and not already in use. Finally, you’ll need to appoint a registered agent who can receive legal documents on behalf of your LLC.
Do I need a business law attorney to set up an LLC?
While it’s not required to work with a business law attorney to set up an LLC, it’s recommended. A business lawyer can provide guidance and support throughout the process, help ensure everything is done correctly, and help you make the right decisions for your business.
How much does it cost to set up an LLC in North Carolina?
The cost of setting up an LLC in North Carolina varies depending on several factors, such as whether you work with a business lawyer and the type of services you need. The filing fee to register an LLC with the North Carolina Secretary of State is $125.
Setting up an LLC can be a complex process, and it’s important to ensure it’s done correctly. Working with a business law attorney can help ensure that your LLC is set up correctly and that you’re making the right decisions for your business.
At Apple Payne Law, we offer low-cost consultations to help small business owners determine if an LLC is right for their business. Our experienced business lawyers can provide guidance and support throughout the entire process.
Contact us today to schedule a free consultation.
Ronald D. Payne II is the CEO and Managing Attorney of Apple Payne Law, a North Carolina law firm he founded in 2018. With more than 11 years of experience practicing law, he is dedicated to representing clients in a wide range of legal matters, including business law, estate planning, family law, probate, and traffic law.
Ronald received his Juris Doctor from the Wake Forest University School of Law and is a member of the North Carolina Bar Association. He has received numerous accolades for his work, including being awarded the 2020 Client’s Choice Award by Avvo and multiple Rising Star awards from Super Lawyers.
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