Best Practice for Small Business. Marketing ideas for small business.

The Single Member LLC is now allowed in every state in America. There are many reasons for a sole owner to set up a single member limited liability company.

1. Personal Liability Protection. The single member limited liability company is the easiest and most effective method for a solo entrepreneur to safeguard his home and savings from business activity. Because of the ease of formation, this can be met without complexity.

2. Taxation. The taxing authorities passed regulations in 1997 that generally allows a single member limited liability company to choose how it wants to be taxed including permitting the LLC to be taxed as if the limited liability company did not exist. This is wonderful because you do not have to subject yourself to tax complexity or double taxation in order to get protection.

3. Ease of Maintenance. The state lawmakers recognized the need to not bury the small business owner with onerous and complex operational procedures. So every LLC is easy to manage but it is even easier for the single member limited liability company which does not require as many checks and balances. It is recommended that you adopt a single member operating agreement just to evidence the existence of your single member limited liability company which helps preserve your protections.

4. Formal Entity. This age we live in is unfortunately wrought with scams to victimize customers. By setting up a single member limited liability company for your business, you separate your company from the others because an official legal entity such as a limited liability company evidences a more responsible business. After all, scam artists do not choose to have dealings with state governments and government filings are required to form a single member limited liability company.

A single member limited liability company is fairly straightforward to start but it should be done correctly. There are inexpensive LLC filing services out there such as The LLC Expert.com who can do this for you fast and properly. Also, in order to make sure you do not lose the benefits of a single member limited liability company make sure you have the minimum paperwork in place such as the single member LLC operating agreement and that you always do business officially as your limited liability corporation and not in your personal capacity.

from B2B News

Douglas Rodgers is CEO and managing partner of FOCUS LLC. Founded in 1982, FOCUS is a national middle market investment banking firm providing merger, acquisition and corporate finance services. In this interview, we speak with Douglas about tips for business-to-business technology companies to consider when selling. Interview highlights include: How to avoid customer concentration, How to build exit strategies into your business plan, When to develop investment banker relationships, What is the role of brand building in mid-market M&A and When to look for financing and liquidity. For more information on Douglas Rodgers and FOCUS LLC, visit www.focusbankers.com.

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