If you’re an entrepreneur about to start your small business, it’s likely that you’ve put in some thought as to what business structure to choose, and where it’s going to be established. While product, market, and sources of funding are all important, these two factors are going to play a huge part in determining the future legal and structural development of your company. So with that in mind, we’ve decided to help make the process a little easier by putting together a short list of benefits to starting a Limited Liability Company (LLC) in Long Beach, California.
State Support
One of the best advantages to setting up an LLC in Long Beach is that small businesses can receive a lot of support. As you’ll see in our article on Small Business Guidance & Loan Resources, there are several programs in Long Beach that provide funding and support to entrepreneurs and their companies. Support is especially important for small businesses, many of whom may be struggling at this point in time. Available programs include the Paycheck Protection Program, SBA Debt Relief, and local assistance.
Privacy
Another benefit to registering as an LLC in Long Beach is the privacy that it affords you. If you’re concerned about separating your personal life from your business, then this business structure is the perfect solution to that. Running a business out of your home, for example, could bring up privacy issues with regards to your registered address. As an LLC, you can simply use a P.O box address or rent a virtual office space that can handle and deliver your mail.
Cost
The cost of starting an LLC in California is relatively affordable, especially when compared to other states. Filing your LLC online or via mail costs around $90, which already includes the $70 fee for the Articles of Organization and $20 fee for the Statement of Information. Filing in person is a little pricier at $105, as it includes an in-person drop off fee. Business owners who want to speed up the registration process can do so, although the fee to expedite it is a little steep at around $1,000 per form for same-day approval and filing. The complete forms must also be submitted and received by 9:30am on that specific day.
Credibility
Probably one of the biggest advantages to filing as an LLC rather than as a sole proprietorship is that it provides your business credibility. Because it’s a more formal business structure, creditors and funders are more likely to take your applications for funding more seriously. This is partly the reason why many small business owners include ‘LLC’ after their business name — it’s a quick and easy shorthand for making your company look more legitimate.
Liability Protections
Finally, the most significant thing about an LLC structure that sets it apart from a sole proprietorship is its liability protections. The Balance defines limited liability as a mechanism that allows corporation owners to be considered separate entities from their businesses. This means that when a crisis happens in your business, such as bankruptcy or debt, your own personal assets are kept safe.
