If your business interacts with anyone, whether it be customers, vendors, employees

, service providers, you should not be operating your business a sole proprietorship. In today’s litigious society, operating a sole proprietor business is creating a bright red target for lawsuits. Form an LLC for your business and you will automatically reduce your risk. ZenBusiness website builder review

For some reason, the United States is notorious for lawsuits. The US has always been a capitalistic country which means many people here are thinking about the best ways to make money. Lawsuits are almost always about money. The legal system was created to protect people but it also creates a system to extract money from others.

A successful business is a prime target for a lawsuit because predators and their attorneys know there is money involved. When you operate as a sole proprietor, your business is inextricably part of yourself. So, if your business gets sued, you personally are being sued.

When you personally are being sued, all of your assets are at risk. Let me say this another way. It is not just your business assets at risk but your home, your savings, your car- everything.

The limited liability company was created as a way to encourage business ownership and business activity. When you form an LLC, you are creating a separate person to be your business. It is a separate legal entity from you the owner. So, if an LLC business becomes liable for an obligation, the owners of the LLC are not automatically personally liable as they would be if the business were a sole proprietorship business.

This layer of protection is so valuable especially in the US. Not only does it protect you from legitimate business obligations, but it makes your business less of a target for frivolous lawsuits. A sole proprietorship business is a bright red target for the many predatory attorneys. They think . . . Hey, this guy runs a successful sole proprietor business. If sued, even if we do not have a strong case, he will pay us something to settle because everything he owns will be at risk.

When you form an LLC, you not only get this layer of protection, but you also automatically get a more professional image. Customers prefer to do business with legal entities such as an LLC over a sole proprietorship. Having a limited liability company is a sign of business legitimacy which goes a long way in the small business world.