• October 2019
    M T W T F S S
    « Sep    

Say I have a product I wish to sell online. How long could I operate before needing to go legit by collecting in state sales tax and forming an LLC?

You should form that LLC today. Generally, you should form/incorporate when one of three things take place: 1) you’re making sales 2) you have employees and 3) you’re using your personal banking account for purchases. It’s easier to have an LLC because you can avoid commingling your personal funds with business funds; by forming an LLC, you’ll have the chance to open up a bank account for the LLC. It’ll make things safer in the event that anything goes awry. By forming an LLC, and abiding by the necessary formalities for maintaining it, creditors will be unable to touch your personal assets if you’re ever sued or the business goes bankrupt. Obviously no one opens up a business thinking that it’ll go belly up, but it’s better to be realistic than optimistic when it comes to legal protection.

I invite you to stop by LawTrades to form your LLC. Our legal marketplace consists of startup attorneys with many years of experience guiding business owners to legal compliance. Visit us for a free initial consultation. Hope this helps.