Hi Zack,
I have been out of work for nearly a year and have lately been thinking about starting my own business. Through my initial research I am coming across the term LLC. It seems many established small businesses have these letters. What does this mean and how does it relate to a small business? E.L. Murray, NE
LLC stands for Limited Liability Corporation. This term is used for legal purposes to separate your personal assets from that of your established business. Depending on your business and the related activities of your small business, this legal step may be a good idea. For example, let’s say you start a lawn care business and you are NOT an LLC. You have employees and some of the daily activities require your employees to drive around town to mow lawns. One of your employees decides to drive too fast and the lawn mower flies off the trailer and seriously injures a person walking nearby. In theory, that person could hold you, the owner, responsible or liable for those damages, but since you are not an LLC not only are your business assets at risk, but in addition personal assets, such as your personal house, your personal car, and personal savings, all at risk. Creating an LLC separates those two categories and allows your liability or responsibility to be “limited” to that of only your small business. Each state has different procedures and fees associated with filing an LLC. The State of Nebraska has a great website, just Google LLC State of Nebraska to find more information on the process.