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Forming a limited liability company (LLC) provides liability protection for any type of business, and should be among the first steps a new business owner takes. Starting an LLC can help protect personal assets while adding legitimacy to the company.
An LLC is one of the most popular entity types chosen by new business owners and start-ups. It's of the easiest entity types to set up and maintain with few annual requirements. One of the reasons an LLC is such a popular choice among small businesses is because it liability protections while being very easy to operate and maintain.
In the US, there are over 21 million existing businesses that are unincorporated. And each year, more than 620,000 new businesses open. Though the incorporation process should be done when a business first opens, many start with marketing efforts first (like a website and advertising) before covering the legal basics. Just because a business has been around for a while, does not necessarily mean they are incorporated!
The most common types of businesses that form LLCs are: