As entrepreneurs develop or adapt their businesses with the demand for ecommerce in mind, uncharted territory will be crossed. Small business owners will have to develop a game plan for how to tackle the world of ecommerce and answer critical questions for their business.

If you’re building a new ecommerce business, one of the most important questions you need to address when launching your online presence is whether you should consider forming a limited liability company (LLC).

Some business owners will form an LLC as their first step, while others will start an ecommerce business to sell products or services, and then form an LLC when they begin making money. So what’s the right answer here?

LLC Protection For Your Online Business

While it’s ultimately up to every small business owner to decide what’s best for their company, it’s also important to understand the protection an LLC can provide your online business. An LLC is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation, giving the best of both worlds to business owners. This means that if you choose to form an LLC, your business will become its own legal entity that has separate debts and legal obligations from you as an individual.

If you don’t plan on raising investment money for your business but want asset protection, flexible business management, and simple taxes, then an LLC is likely the best choice for your business. An LLC can provide the same limited liability protection as a corporation, but without many of the regulatory complexities and legal formalities associated with them.

Altogether, this makes an LLC a great option for small business owners who are selling their goods and services online. Especially as online shopping for goods and services continues to increase, protecting your business from the known (and unknown) risks that may be associated with…

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