Hantzes & Associates Business & Employment Law

Contact Us Today: 703-378-5000

  • Home
  • About
  • Our Practice
    • For Employers
    • For Employees
    • Business Law
    • Commercial and Residential Real Estate Law
    • Malpractice Law
  • Blog
  • Contact
Hantzes & Associates Business & Employment Law

Call: 703-378-5000

  • Home
  • About
  • Our Practice
    • For Employers
    • For Employees
    • Business Law
    • Commercial and Residential Real Estate Law
    • Malpractice Law
  • Blog
  • Contact
Is it time to convert your sole proprietorship to an LLC?

Is it time to convert your sole proprietorship to an LLC?

On Behalf of Hantzes & Associates | Apr 16, 2021 | Business Law |

You started your business on your kitchen table — and it’s succeeded beyond your wildest dreams. What started out as a side gig has become your full-time occupation.

Is it time to convert your sole proprietorship to a limited liability corporation (LLC)? It just might be a strategic move.

What’s the benefit of an LLC?

As long as you operate as a sole proprietor, you and your business are the same legal entity. That can be legally and financially dangerous if you end up being sued by a disgruntled customer or supplier. Every asset you own — including your home — could be at risk.

When you operate as an LLC — which can be done even if you retain sole control over your company and are its only employee — your business becomes its own legal entity. Its assets and your assets are two distinct things. This provides a layer of protection against lawsuits and other financial issues.

What does it take to form an LLC?

Generally, an LLC isn’t that difficult to create (although it’s generally wisest to work with a legal professional throughout the process). The basic steps include:

  • Finding a unique business name that isn’t already registered in your state and doesn’t infringe on anyone else’s intellectual property rights
  • Creating your articles of incorporation and filing them with the Virginia Secretary of State’s office
  • Drafting an operating agreement that lays down the rules of ownership and describes how the business will be managed and how profits and losses will be divided
  • Publishing the creation of your LLC, if so required in your jurisdiction
  • Opening a new bank account that is solely for your business
  • Obtaining any required business licenses or permits that are necessary to legally operate in the state, county and city

While it’s not a long list, these steps do require a lot of research — and mistakes can be costly. If you’d like to learn more about how our firm can help you with your business entity formation, please continue reviewing our website or contact us directly.

  • Facebook
  • Twitter
  • Google+

Recent Posts

  • How to spot a disadvantageous severance agreement
  • How to avoid wage and hour claims
  • You do not have to put up with sexual harassment at the office
  • 2 ways for employers to combat racial discrimination at work
  • 3 points to remember about partnership disputes

Archives

  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020

Categories

  • Business Law
  • Business Litigation
  • Employment Law – Workers
  • Firm News
  • Uncategorized
  • Wage and Hour Disputes
  • Workplace discrimination

RSS Feed

Subscribe To This Blog’s Feed

FindLaw Network

Contact Us Now

Get the answers you need for moving forward

Hantzes & Associates Business & Employment Law

Office Location

10513 Judicial Dr.
#100
Fairfax, VA 22030

Phone: 703-378-5000

Fax: 703-448-4434

Fairfax Law Office Map
  • Follow
  • Follow
Review Us

© 2023 Hantzes & Associates • All Rights Reserved

Disclaimer | Site Map | Privacy Policy | Business Development Solutions by FindLaw, part of Thomson Reuters