Limited Liability Company - LLC

LLC: Limited Liability Company, or LUHLC, as professionals in the business pronounce it. Why do you want one? Because limiting liability is a good thing if you are the one potentially liable for that stooge who slips on a banana peel in your lobby waiting area, and then sues you. And wins.

If you start building your own company as an individual, and not as an LLC, and you get sued for whatever, and you lose, you could lose everything you own. That is, the lawyers will come after your house, your car, your poodle, your signed Mila Kunis photograph collection. And legally, they will be entitled to take all of it.

If you have existed under the legal structure of an LLC, however, the most you can be liable for is the assets of the business itself. Yes, they’ll take the company computer, the remaining 17 months of lease on the company building, and all your staplers and Post-It's but legally, they won’t be able to go after your home, your car, your poodle or your autograph collection. Mila is safe. Phew.

So LLCs are a good thing. They cost only a few hundred bucks to set up these days. So before you start up a lava lamp company of your own, think about setting one up first. Mila and your poodle, Gregory will thank you for it.