Forming an LLC (Or Limited Liability Corporation) is simple and it is the best way to get your business started. When my vending company got off the ground, this is the first thing I did. The biggest advantage of forming an LLC is to protect yourself.
Let’s say you have a vending business, and a customer drops their quarter in front of the machine and bends down to pick it up. As they are bending down, they bump the machine and suddenly the sharp edge of the metal lid falls over and smacks against a customer’s head and crushes their skull, causing the customer to bleed extensively. They are rushed to the hospital in an ambulance for emergency surgery. Thankfully the customer fully recovers 3 days later. Unfortunately, they decide to sue you. The good news in all of this is that if you formed an LLC. This means they can’t sue you as an individual for all your money, they can only sue the company. Congrats! You get to keep your Wave Runner.
An LLC is formed by filing papers with your state. The process is fairly quick and easy and costs between $125 and $300 depending on your state. Many states allow you to fill everything out online. You can find what your state requires here.
Once you fill out your papers and pay the fee, you are officially a legal Limited Liability Corporation!
DISCLAIMER: The graphic nature of the story was used to convey a point and is not based on true events. I do not intend to offend anyone or make and individuals feel uncomfortable. I only intend to educate. Thank you for your understanding and patience.