You don’t start your own business unless you are willing to take a few risks. You knew that there was a chance that your business could go belly-up before you got started, but you believed that your company could make it. But while a certain amount of risk is inevitable in this line of work, you can protect your personal assets by creating a Limited Liability Company or LLC. As a small business owner, you should ask yourself, “Should I create an LLC?”
An LLC keeps your personal and business assets separate. That way, if your business gets sued or gets behind on its bills, creditors can only come after the assets of the business itself. In a sole proprietorship, your house, car, and other personal assets could be at risk if your business experiences financial difficulties.