I am starting a catering business. I want to structure my business as an LLC
however, I read that certain business that require licenses have to be ran as
some type of an corporation. Is this true?
Before you go through the expense and hassle of incorporating, figure out why
you are choosing to incorporate. Get the facts about the so-called protection
of an LLC (or S Corp). Understand that incorporating does not automatically
offer full protection for your personal assets. This is widely believed and
the main reason most entrepreneurs choose to file as an LLC.
But, everyone needs to know that once you sign a personal guarantee it
basically renders the LLC's "protection" null and void. And you will be
required to sign that little personal guarantee every step of the way.
Realtors (for brick and mortar), most vendors, banks, merchant account
companies (credit card processors), etc...require that personal guarantee.
Speak with an attorney before you make this important decision.
bizplanhelper | Window Shopper | 6/21/2012 - 8:15 pm
you are choosing to incorporate. Get the facts about the so-called protection
of an LLC (or S Corp). Understand that incorporating does not automatically
offer full protection for your personal assets. This is widely believed and
the main reason most entrepreneurs choose to file as an LLC.
But, everyone needs to know that once you sign a personal guarantee it
basically renders the LLC's "protection" null and void. And you will be
required to sign that little personal guarantee every step of the way.
Realtors (for brick and mortar), most vendors, banks, merchant account
companies (credit card processors), etc...require that personal guarantee.
Speak with an attorney before you make this important decision.
kburger | Community Moderator | 6/21/2012 - 10:40 am
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