My goal is to make sure that you aren’t personally on the hook for whatever happens in your business – whether that’s getting sued, owing money, or something else entirely. That means you have to register your business properly so that you, yourself, are protected. When it comes to business insurance, you’re only protecting the business’s money – but what about your own money? That’s where business registration comes in. It’s not as complicated as people make it out to be, so let’s make it easy for you to keep your assets covered!
In this episode, you’ll hear…
03:46 – Why you need to be personally protected
06:55 – Where to start registering your business
10:22 – The difference between a sole proprietorship and LLC
17:10 – How to properly act like an LLC
How do I get started registering my business?
You need to register your business in the state in which you work and live. Start by looking up your local state’s business registration (Google is your friend here) and looking at the official registration site. There may be several options available, so look through them and start excluding ones that don’t apply to you right away – business partnerships require a business partner, for example. Look at the requirements and limitations that your state describes. Believe it or not, the state websites can actually be very helpful! Most people come down to either a sole proprietorship or an LLC.
What’s the difference between a sole proprietorship and an LLC?
Sole proprietorship is what it sounds like: you are doing business as yourself. It tends to be cheaper and more straightforward (again, depending on where you live). But it doesn’t offer you any personal liability protection – which is, in my opinion, the legal point of registering your business. LLCs provide another level of legal protection, and they are much more flexible. It also offers limited personal liability protection.
How do I get all the legal protections of an LLC?
To get all of the protections provided by an LLC, you have to act like an LLC. Keep your business money separate from your personal money. Signed contracts should refer to your business, not you as a person. You always want to advertise and market yourself as a business, not as a person. You also need to keep clear and organized bookkeeping notes. Basically, make sure the distinction between you and your business is obvious in all regards.
If you want to learn more about properly acting like an LLC, be sure to join me for my free legal workshop. Sign up to learn more about registering your business properly, the difference between sole proprietorship and LLC, and personal liability protection.
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Resources Discussed in This Episode
- Sign-up for my FREE legal workshop HERE: samvanderwielen.com/oyt-workshop
- Listen to Episode #7 of On Your Terms: The First 3 Steps to Legally Protect Your Business (Where to Start!)
If you’re ready to legally protect and grow your online business today, sign up for my free workshop so you can learn how to take the simple legal steps to protect the business you’ve worked so hard to build. Click here to sign up for the free workshop so you can get legally legit right!
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DISCLAIMER: Although Sam is an attorney she doesn’t practice law and can’t give you legal advice. All episodes of On Your Terms are educational and informational only. The information discussed here isn’t legal advice and isn’t intended to be. The info you hear here isn’t a substitute for seeking legal advice from your own attorney.
On Your Terms is a production of Crate Media.