If you own an Etsy business, it is important that you understand the legal implications of operating such a business. Depending on where you live, and the size of your business, there may be certain requirements that must be met in order for your business to remain in good standing, legally. One way to ensure that you are meeting all the legal requirements is by forming a limited liability company (“LLC”). In this blog post, we will discuss why it is important to consider hiring a lawyer when forming an LLC in the state of Texas for your Etsy business.
What is an LLC?
An LLC is a type of business entity that combines aspects of corporations and partnerships. An LLC can offer its owners protection from personal liability, while also allowing the LLC to operate as an independent entity separate from its members. This means that if someone were to sue the LLC, the members’ assets would generally not be at risk, because the LLC operates as its own entity, rather than as part of the members’ personal assets.
Why Forming an LLC Matters for Your Etsy Business.
Forming an LLC for your online shop offers several benefits. First, it helps protect your personal assets from any potential liabilities stemming from running your Etsy store. Second, it makes it easier for you to open bank accounts and obtain credit cards in the name of the LLC, which can help streamline financial processes for taxes and other expenses related to running the store. Third, having an LLC can also give you more credibility with customers and vendors who may perceive it as a sign of legitimacy and stability.
Hiring a Lawyer to Form an LLC in the State of Texas for Your Etsy Business.
When forming an LLC in Texas, it’s important to hire a lawyer who specializes in business formations so they can guide you through each step of the process. A lawyer can help ensure that all paperwork is completed correctly and filed with the appropriate agencies. A lawyer can also advise you on any additional measures required by law, such as, obtaining permits or licenses, or registering with certain government agencies. Lastly, a lawyer can provide guidance on how to best structure and manage your day-to-day operations of an LLC so that you remain compliant with local, state, and federal laws at all times.
When starting, or expanding, your Etsy shop in Texas, it is important to consider forming an LLC. Hiring a lawyer who specializes in business formations when setting up an LLC will save time by; (i) ensuring all necessary paperwork is filled out correctly and filed with the appropriate agencies, and (ii) providing guidance on day-to-day operations within the framework of an LLC. Therefore, you can remain compliant with local, state, and federal laws at all times. Just by reading this blog, you are already well on your way towards successfully launching, or expanding, your Etsy shop!
Forming your entity is more than just filling in blanks on a template like other firms suggest. With over 14 years of business transactional experience, our STBL Managing Attorney has formed countless of businesses and picked up the pieces of poorly structured entities. Whether you are considering forming an entity or need help with fixing it, call STBL today!
Disclaimer: This article is made available for educational purposes only, to give you general information and a general understanding of the law, not to provide specific legal advice. By using this article, you understand and acknowledge that no attorney-client relationship is formed between you and The South Texas Business Lawyers, nor should any such relationship be implied. This article should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.
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