Do I need an LLC?

If you’re a real estate agent or business owner, one of the most important things to consider is how your business will be structured. If you want to shield yourself from liabilities and other legal obligations, forming an LLC might be the right choice for your business. An LLC (Limited Liability Company) is a business structure that lets you legally separate your personal assets from your company’s. You’ll get to keep all the profits, but you’ll also have the protection of limited liability and tax benefits.

In this thirteenth episode of The Process podcast, Scott Royal Smith from Royal Legal Solutions talks about why having an LLC is important to protect your assets. He’ll walk you through the basics of what an LLC is, when and why you need one, and how it can shield you from losing all of your hard-earned assets.

Learn how to stabilize your finances and safeguard yourself against judgments and potential liabilities!

Get to know Scott Smith

Scott Royal Smith is the founder of Royal Legal Solutions and he has been helping business owners start their business or grow it by creating an entity that can protect them and their assets if something were to happen.

One of the biggest questions that we hear today is whether or not people need an LLC to do business. And at Royal Legal Solutions, Scott believes that it’s definitely something that you want to look into especially if you’re in a business where you’re doing real estate, being a landlord or any tangible assets that are worth money. With an LLC, it will be able to protect your personal assets from negative business liabilities. However, that doesn’t mean you need to have an LLC right away; there are still several factors that you need to consider before taking that plunge, and Scott has been helping people choose the appropriate legal configuration for their business needs.

Benefits of LLC

Financial independence and security are what every person strives for. Protecting your hard-earned money against civil court cases is just one way to protect yourself. Being sued can be traumatic in anyone’s life, but when you learn how to safeguard your assets and protect yourself, it is one less thing to worry about.

It’s a little-known fact that, as an agent, you can find yourself legally liable for the actions of your clients in certain situations. In fact, it happens more often than you think. You could potentially lose all of your assets if a client or potential client sues you and is successful in court. That said, there is a way for you to protect yourself from this liability, and that’s through the creation of an LLC. But before you make this decision, it’s essential to understand all the benefits and drawbacks of forming an LLC and how they compare against other types of corporations.

An LLC offers many benefits to its members. These include reducing your personal liability and protecting assets for future generations. If you have an LLC, the assets of the business are not yours personally and cannot be taken by creditors if you go bankrupt or lose control of your assets. Instead, those assets can be protected from creditors in court through the use of liens or mortgages on real estate owned by other parties within an LLC.

LLC may be something that suits some agents better than others. If you’re just starting out, consider if working through an LLC is something that makes sense because LLC is not for everyone especially if you’re just a new agent earning less than $50,000 a year. But once you realize that the benefits outweigh the costs and drawbacks for you, then an LLC may be the right choice.

Before taking the plunge, speak to an accountant or tax attorney first to determine if this best meets your business and personal needs. Ensure that you also keep good records and maintain all necessary documentation. By keeping up with your paperwork, filing for annual tax returns, and paying the necessary license fees, you’ll be able to enjoy the relative freedom and flexibility of operating under an LLC in no time.

Conclusion

Forming an LLC can be worthwhile and beneficial, especially if your business needs it. You might not think those needs are pressing, but when you start up, there’s always something new to consider—and the more you exhaustively prepare for in the beginning, the easier and smoother your progress will be.

There are numerous benefits and drawbacks to taking this route, like anything else. But for many entrepreneurs, an LLC allows them to personally limit their liability risk, but still enjoy pass-through income taxes, which can be very attractive. LLCs are not only fashionable but also very useful in saving taxes, which means that you’ll have more money to invest in your business or your future. Because at the end day, it’s not what you make, it’s what you keep.