Use Your LLC

How to Use Your LLC

Once you’ve formed your LLC, you may be wondering what now? Well, remember your LLC basically has all the rights of a living, breathing person. The LLC can enter into contracts, sell tangible goods, own property and do a variety of business-related tasks all depending on the purpose of your LLC.

Remember to keep a strict separation of personal and business assets. For example, if you’re headed out on date night, pay for everything with your personal card, not the business card. While you may be the owner, don’t use your LLC as your personal piggy bank.

What's the Purpose of Your LLC?

If you’re merely operating your LLC as a straight-up business, remember that your LLC is the entity doing business, not you. That means you’ll be signing the LLC’s name to all kinds of things like leases, contracts, websites, anything business related. You want to keep your personal name off everything you can and list the LLC’s name instead. By listing the LLC’s name, you are creating separation between you and the business. You do this to limit your personal liability, as your business may not work out, but that doesn’t mean you personally should have to lug around any business debt if that happens.

Additionally, LLCs can be used for a wide variety of purposes other than strictly doing business. Many people use LLC’s as holding companies. There’s nothing inherently weird or sketchy about this. Often people form an LLC to hold an asset like real estate. The LLC would then sell the land or simply hold it. To operate this kind of LLC, you’ll need to transfer assets into the LLC.