Welcome to the community Rover8!
When you formed your business, did you consult with an attorney as to which was the better way to go for protection from liability lawsuits? I'm thinking that would be a great place to start if you haven't already done so. You could also consult with your accountant.
I wish you the best and hope you find the answer you need. Please feel free to browse the discussion boards and articles here in the community. You can also use the search function on the home page to find discussions/articles on the subject you are interested in.
Thanks Berta for responding.
Actually before I did the LLC ~ I did a little research and it appeared I seem to see a lot of known businesses were listed
as LLC versus Inc., and formed my opinion from that without the advice of an attorney. I'm the sole proprietor and only managing member of both dba's.
This discussion came about as general small talk with another small business, who owner mention to me she had friends who were litigation attorneys and said you should sign the company's name on business documents versus signing your name, If you signed your own name, then you would probably not be
protected if suit was filed against you against any kind of litigation.
Message was edited by: rover8
Thanks for sharing more about your business start up & the conversation. I would still consult with an attorney to get accurate info on which way to sign to protect yourself & your business. It wouldn't hurt & some attorney's, not all, have fee consultations. Of course, a lot of those are for clients who are in trouble & the attorney will be making money off of their case. Either way though, it wouldn't hurt to pay for the consultation if necessary, just for the peace of mind that you are doing the right thing with the way you sign documents.
Thank you so much for responding. Yes, I agree with your answer it put my mind at ease, and I want to do everything the right way.
Your accountant can explain everything to you. There is a HUGE difference between an Inc. and an LLC. A LLC technically has no owners; Hence the litigation comment from the attorney. We sign all of our documentation as our LLC name. Financially, there is a huge difference as well. There is no payroll as a managing member and you get taxed twice (one downfall of an LLC). An LLC can liquidate quicker and easier if needed. I would speak with your accountant about all of your concerns.
Thank so you much, taking it all under advisement.
Hello this is Rover 8
Hope that everyone in the business community is doing very well and becoming prosperous. My question this time, is that I have been reviewing ways to curtail some merchant expenses in my business and looking at other ways to save on expenses, and so a question came up from my discussion with another business owner as to which protects you from Liability Suits in terms of your personal assests ~ an LLC
or being Incorporated.
At this point I have(2) fictitious business both are under the LLC ~ so should I sign be signing my Personal name on business documents
when I'm transacting business for my companies, or should I sign my Companies name depending on which of my businesses I'm working on at the time.
And again, should I have being Incorporated or an LLC ~ I'm a small business.