What’s the point of an LLC?

Nearly any type of business venture (no matter how big or small) should be accompanied by the creation of a business entity.  The term “business entity” refers to a limited liability company (LLC), a limited liability partnership (LLP), a corporation or other similar organization.  In many cases, an LLC is the easiest and most flexible type of business form.  So why is this so important? Operating as a unique business entity (as opposed to running a business in your own name) generally offers protection from personal liability. In other words, if the company faces some type of liability (contract, lawsuit, etc.) that liability does not extend to the individual owners of the company.  The owner will not be personally liable for the debts and liabilities of the company.  Of course, there are numerous important legal and procedural nuances to comply with to assure the viability of such limited liability.  Additionally, a number of important tax issues interplay with any decision regarding a business entity. However, in the end, some type of business entity is nearly always strongly recommended for any type of business.