When do I register my business as an LLC or corporation?

Hey! Before we start, you should know that LLC’s and corporations are the number one topic online entrepreneurs ask me about. If you have spent any time in Facebook groups lately, you have definitely run across a well-meaning soul (maybe even a lawyer) who proclaims that you are not truly invested in your business- but *totally* at risk- if you did not register on Day 1.


Hang on to that $500 or so you would spend registering until you read this. I’ll give you the exact, no legal-ese conversation I have with clients in my office about this topic all the time- no appointment necessary. And because I love to make legal topics crazy simple, I’ll boil it down to one question you can ask yourself to decide if it’s time to register your business. You can do this!

Before I give you the goods, here is one of those basic truths that you don’t often see spelled out clearly: A business is still a business even if it is not registered as an LLC or corporation. In fact, a business that operates without registering is a perfectly legal (and super easy) option. It’s called a sole proprietorship, and lots of savvy entrepreneurs purposely run their new businesses this way.

Sole proprietorships do not have all the benefits you get with registration, but they do have one huge advantage when you’re starting out: they are free to start and maintain. And bonus! You still get to write off your business expenses to reduce your taxes.

Those awesome benefits are the reason why I tell clients to think carefully about whether they need to register. LLCs and corporations cost money, they require ongoing maintenance, and they are not foolproof, so you should have a good reason before you ditch your sole proprietorship to get one.

Are you in? You can get the goods inside Biz.Love.Society. my *free* library of resources for entrepreneurs. Click on over to get your membership and set aside about 10 minutes to get to the bottom of biz registration!