I saw this tiktok ad of this content creator saying she didn’t know how to make an llc but she found a company that did it for her and she was promoting the company and saying how anyone can get one. But why? and what is it?
In: Economics
LLC is a Limited Liability Corporation. It is a business entity that is most often used for the business interests of an individual or small group. You can do business solely as yourself, but there is a risk in doing so: If you are ever sued because of the work you performed, any of your personally owned assets can be seized in the lawsuit: Anything you own, your home, vehicle, etc.
If you create an LLC and you are sued because of the work performed by that LLC, only the assets owned by that LLC can be seized: any tools or properties owned or used by corporation, but nothing of any of the employees of the LLC.
In short, its a fairly simple business and legal tool used to protect a person’s private property in a business mishap. There are other benefits to having an LLC but this, as I understand, is the primary one.
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