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Why Forming a Virginia LLC is Necessary When Starting a Virginia Business Today


Virginia Business Formation. Virginia Limited liability companies are formed primarily for the purpose of limiting or avoiding personal liability from business ventures. A Virginia LLC is its own legal entity and is able to enter into contracts and obligations needed to run a business. This alleviates the need for the individual business owners in Virginia to enter into business obligations.

As a result, the LLC becomes a stealth asset protection vehicle. It has the effect of protecting the credit and assets of the business owners if they get sued or are unable to pay business loans in a timely manner. The Virginia LLC places a legal buffer zone between the business and the people who own it. This applies to other potential problems such as employee lawsuits which are on the rise. This is because the limited liability company is the legal employer.

Given the current economy, many small businesses are going out of business. If these businesses are LLC entities, a business bankruptcy will not create a personal bankruptcy for the business owners. While no one wants to think about failure, the statistics show that a great majority of businesses fail. This is a huge benefit in the event of a business failure. A personal bankruptcy can affect your financial options for over 7 years.
Without the use of one, your business will be a sole proprietor business and you, as the owner, will be completely at risk for any potential business liability, lawsuit or bankruptcy.

On the flip side, having the protection of a Virignia LLC is useful when business is good and there are large profits. From a statistical standpoint, businesses that are thriving are more likely to get sued than are those that are struggling.

Virginia LLC formation is a simple and inexpensive task that can save an immeasurable amount of time and money in the events of lawsuits, down economies, and bankruptcies. All business owners just starting a business or who currently operate as a sole proprietorship should strongly consider forming an LLC.

If you need information about forming a Virginia LLC, visit These protections apply to other states as well. The LLC Expert at has the most in-depth LLC learning center and is now offering a special on expedited LLC formation services. Make sure your limited liability company is completely formed prior to conducting any business activity.


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