Should I Incorporate or Form an LLC for my Company?

Yes! There are many benefits and only one downside.

The one downside is that unlike a sole proprietorship, initial set-up is a bit complicated and you should seek professional advice to ensure that it's done correctly. Professional advice will cost you something. In Washington, the annual Corporation/LLC renewal fee is only $59.

The primary advantage of forming a corporation or an LLC is that you reduce your personal liability. When you are a sole proprietorship, all of your personal assets (your home, car, savings, 401(k), tools, etc.) are at risk if someone sues you.

However, if someone sues a Corporation or an LLC, (in general) only the assets of the company are at risk of being lost.

Even if you have been a sole proprietorship for years, you will still benefit from converting to an LLC or incorporating. Converting will not protect you against events and/or lawsuits that occurred prior to conversion to an LLC or corporation, but converting will protect you from events that occur after forming the new LLC or Corporation.

Call or email our office today for a free consultation with a corporate attorney with over ten years experience on forming LLCs and Corporations.

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