As entrepreneurs expand or adapt their businesses with e-commerce demand in mind, uncharted territories will be crossed. Small business owners will need to develop a plan of action to approach the world of e-commerce and answer critical questions for their business.
If you are starting a new ecommerce business, one of the most important questions you need to address when launching your online presence is whether you should consider starting a business. limited liability company (SARL).
Some business owners will form an LLC at first, while others will start an e-commerce business to sell products or services and then form an LLC when they start making money. So what is the correct answer here?
LLC Protection for Your Online Business
While it’s ultimately up to each small business owner to decide what’s best for their business, it’s also important to understand the protection an LLC can offer your online business. An LLC is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation, providing the best of both worlds for business owners. This means that if you choose to form an LLC, your business will become its own legal entity that will have debts and legal obligations separate from those of you as an individual.
If you don’t plan to raise investment funds for your business but want asset protection, flexible business management, and simple taxes, then an LLC is probably the best choice for your business. An LLC can offer the same limited liability protection as a corporation, but without many of the regulatory complexities and legal formalities associated with it.
Overall, this makes an LLC a great option for small business owners who sell their goods and services online. As online purchases of goods and services continue to increase, it is essential to protect your business from the known (and unknown) risks that can be associated with online retail.
Some small business owners believe that starting an LLC will be time-consuming and expensive, adding even more difficulty to an already stressful business launch. But the reality is that with an online incorporation and filing service like File Inc, you can easily and inexpensively form your LLC for as little as $49 plus fees in some states. This is such a small cost compared to the enormous protection you get when you form your LLC and know that you have some security in case of unfortunate legal issues.
Aside from the legal protection and peace of mind you’ll receive by forming an LLC, your online customers will view your business as more reputable than those who don’t have a formal legal entity. In the world of e-commerce, this is an undeniable advantage.
As a small online business owner jumping into the murky and crowded pool of e-commerce, you should definitely consider forming an LLC to provide some legal certainty while building credibility with consumers. You do not know where to start ? File Inc is able to remove the burden of preparing and filing an LLC and provide assistance throughout the process!