Do I Need an LLC Now for My Business - 005

As I explained in Episode 001, it’s important to build systems and processes around what you love to do – systems and processes that you can teach others to manage so you don’t kill yourself trying to get to your dream life.

One of the first questions new entrepreneurs face when they start building their business foundation is “Do I need to set up a limited liability company or corporation right away or can I wait?”

Think of an LLC as a box, with your business and its pile of assets inside and your pile of personal assets outside.  The business pile is owned by the LLC; the personal pile is owned by you.   

This concept of separation of ownership is important in the event you or your business is sued. 

So the question isn’t really whether or not you should set up an LLC, but when. 

There are a number of things to consider when deciding at what point to set up your LLC.  It’s not as cut and dried as you might think.