I am getting ready to start a small internet business. What are the cons to waiting until the business grows to form an LLC?

Answer Question Report Abuse

Craig Smalley, Tax Professional

@cwseapa • 09/12/15 This answer was first published on 09/12/15. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

Permalink Report Abuse

Starting an LLC immediately, not only makes sense, it is a win-win for both sides. For example, if you are to form an LLC today, it would mitigate your legal liability going forward. If you wait too long, you could run into a legal situation that couldn't be handled as a sole proprietorship.

Craig W Smalley EA

Admitted to Practice before the Internal Revenue Service

see this user

Christopher Gething, Certified Financial Planner

@ChristopherGething • 09/18/15 This answer was first published on 09/18/15. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

Permalink Report Abuse

You should consult with an attorney or accountant for a detailed review of your particular situation. In most cases it would make sense to form an LLC immediately as you would be able to limit your liability immediately, now, and going forward.

Answer Question

WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.

WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by a WalletHub user. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.

Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.

Ask a Question

140

Ask Question

Ask Your Question

WalletHub Transparency

We are committed to being fully transparent with our readers. Opinions expressed here are the author’s and/or WalletHub editors'. WalletHub editorial content on this page is not provided, commissioned, reviewed, approved or otherwise endorsed by any company. In addition, it is not any company’s responsibility to ensure all questions are answered.