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Is an LLC Worth It for Sole Proprietors?

The Motley Fool

Image source: Getty Images If you're starting a small business, generally the first step is setting up the legal structure of your business. LLC stands for "limited liability company," which is a business structure that combines the pass-through taxation of a sole protectorship with the limited liability of a corporation.

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What Kinds of Insurance Does Your Small Business Really Need?

The Motley Fool

General liability insurance Liability insurance (also sometimes called CGL insurance, for comprehensive general liability) protects your business from claims related to bodily injury or property damage caused by your business or employees. CGL insurance also typically covers legal defense costs if your business is sued.

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5 Reasons to Seriously Consider Using a Living Trust to Pass an Inheritance to Your Family

The Motley Fool

The phrase "trust fund" might conjure images of a spoiled teenager, but trusts are powerful legal documents that many people should consider when estate planning. Living trusts dictate the distribution of someone's assets, and are created while that person, called the grantor, is still alive. Image source: Getty Images.

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These Are the 3 Biggest Downsides of Getting Minimum Auto Insurance

The Motley Fool

Almost every state requires liability insurance, but many don't mandate much, if any, coverage beyond that. It's possible to comply with the law in some places with as little as $15,000 per person and $30,000 per accident in bodily injury liability coverage. These prices could come in at around $100 a day or more.

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How to Start a Business for Under $100

The Motley Fool

Step 2: Establish your legal framework (Cost: $0 - $20) Think about what type of business structure will work best for you. Unlike a sole proprietorship, an LLC draws a legal line between you and your business. This separation not only protects your personal assets from business liabilities, but can also offer potential tax benefits.

Legal 245
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The Single Most Effective First Step in Launching Your Small Business

The Motley Fool

When you are officially ready to launch your small business, it's important to make it "official" by forming a legal entity for your business. This can include forming a limited liability company (LLC) or incorporating your business as an S Corporation or C Corporation.

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Here Are 8 Ways the Richest Americans Avoid Paying Taxes

The Motley Fool

They accomplish this (legally) by using some of the most effective tax breaks available in the U.S. Here are eight ways the wealthiest Americans reduce their tax liability -- or even avoid paying taxes altogether. Instead, their wealth is tied up in stock and other assets. And he isn't alone.

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