Business entity registration

Forming a single member LLC

I want to start a business and my accountant recommended that I become a single member LLC. Can someone tell me if that’s a good option? What steps do I need to take to form one?

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Answer

  1. 12 Answers

    A single member LLC is one of the most common business structures for single owner businesses in the US. As the name indicates, a single member LLC is an LLC with only one owner.
    A single member LLC, like all other LLCs, have two main advantages:
    1. your personal assets are protected against business debt and legal liabilities
    2. you can choose how you want to be taxed- on your personal tax return or file a corporate tax return

    So, to answer your question, an LLC is generally a good idea if you’re looking to start a business by yourself, and you want some level of legal protection if anything went wrong with your business. The only downside is that you’ll have to file some paperwork and pay a small amount to get it set up, the cost depends on the state, but it’s generally below $100.

    To become an LLC, check your state government website for information on process and fees. Just google your state plus the phrase “LLC registration” (example “Chicago LLC registration”).

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