Jared Ell, ecosystem navigator with the ISBDC, teaches a hard but valuable lesson that what you make as an entrepreneur you want to protect and keep--your house, car, saving, investments, and cash. Learning how (and why) to register your business as an LLC (Limited Liability Company) can help protect your personal assets.

Jared assigned each student a type of business--sole proprietorship, LLC partnership, LLC, s corporation, and c corporation. With each scenario, he took from their income taxes, pay, and purchases. He may have added money from investors, but with one lawsuit, students saw how they could not only lose their cash, they could lose their car keys, cell phone, watch, and wallet.

Though an LLC business can get sued and its assets can be taken, a business owner can more likely retain their personal assets and they are safer from litigation and loss.

Jared walked CEO students through registering a business on inbiz.gov and gaining a employer identification number for tax purposes. The cost of registering a business in Indiana as an LLC is $95. Once that is complete, students learned they will have an Articles of Organization document to register with the Secretary of State. He showed CEO that it's not hard, not expensive, and helps them protect what they own.
#miehq #jaredell #ISBDC