Why You Need A LLC for Your Side Hustle.
As a society, we are increasingly becoming more and more entrepreneurial. And as our economy continues to shift, more and more people are turning to side hustles to make ends meet.
While a side hustle can be a great way to make some extra money, it can also be a great way to get sued. That’s why, if you’re thinking about starting a side hustle, you need to consider forming a limited liability company (LLC).
An LLC can help protect your personal assets.
If you are operating your side hustle as a sole proprietorship, your personal assets are at risk if your business is sued. But if you form an LLC, your personal assets are protected from liability.
This means that if your side hustle is sued, the only thing at risk is the money you’ve invested in the business. Your personal assets, like your home and car, are safe.
An LLC can make it easier to get funding.
If you’re looking for funding for your side hustle, investors are going to be more likely to give you money if you’ve formed an LLC. That’s because they know their investment is protected from liability.
Plus, forming an LLC shows that you’re serious about your business and that you’re willing to invest in it. This can make it easier to get funding from banks, angel investors, and venture capitalists.
An LLC can make it easier to do business with other companies.
If you have an LLC, other companies are going to be more likely to do business with you. That’s because they know they’re dealing with a professional business entity, not just a hobbyist.
Plus, if you ever want to sell your side hustle, forming an LLC makes it much easier. That’s because buyers are going to be more interested in an LLC than a sole proprietorship.
So, if you’re thinking about starting a side hustle, be sure to form an LLC. It’s the best way to protect your personal assets, get funding, and do business with other companies.