Gen­er­ally, small busi­nesses with employ­ees, more than one owner, valu­able busi­ness assets, or con­tracts should form an LLC rather than a cor­po­ra­tion. So let’s focus on LLCs.

To make this eas­ier, let me intro­duce you to my good friend Mr. LLC. That’s right, an LLC is a totally sep­a­rate per­son in the eyes of the law. Mr. LLC was con­ceived, born, lives and dies just like a real liv­ing human being. It gets even bet­ter than that. Mr. LLC can buy things, sign con­tracts, own things, go to court, be sued, and do almost any­thing else a real live per­son can legally do.

Let’s start with look­ing at the var­i­ous types of LLCs.