We get asked all the time. How do you set up a business? Do you need to file anything? Do you have to register the business? What type of business do you recommend? We will tackle these questions in a multi-part series reviewing the different business types: doing business as (DBA), limit liability company (LLC), and corporation.
First you have to start with the leading question. Do you need to register your business? The answer is, generally, no. You may start a business at any time without registering it. There are a few exceptions. Certain businesses may require a license and/or a permit to operate. For example, a bar is required to obtain a liquor license. However, you don’t need to register a construction or lawn service business to start operating.
If you don’t need to register most businesses then why does everyone talk about LLCs and corporations? The main reason is liability protection. If your business gets sued, then you want to protect your personal assets from the lawsuit. Furthermore, you can protect the owners of the business from business debts. Click Here for more information on liability protection.