For starters, and LLC or "Limited Liability Company" is a business entity, much like a corporation, that provides limited liability to its business owners. Unlike a corporation (which is double-taxed), an LLC is single-taxed, only at the corporate level. LLCs are ideal for companies that only have one employee, or owner: with an LLC, the business owner's personal bank account is entirely separate from the LLC's bank account, and the personal account has zero risk in situations involving lawsuits against the LLC.

If you're a small business owner (currently a sole proprietor), an LLC is the ideal and highly recommended move for you! This also goes for small partnerships or family-owned businesses. Why? Simply because you need the peace of mind that your life savings won't get dragged into a lawsuit against your small business. As a sole proprietor, it's an ever-present risk you're taking. So, why not spend that one time fee of $600 or so, and register an LLC with your state of choice? You'll be glad you did!

In cases where a small business has several people of whom have a stake in it - your LLC comes complete with shares of stock. Simply divvy up the shares as you, the business owner, see fit. There are several options in creating the LLC that will give the business owner either total or partial authority in the management of stock and the decision-making processes. Discuss these options with your constituents before you form an LLC.

Several online solutions exist that make the process of forming an LLC extremely easy. Highly reputible services including LegalZoom and Corporate.com take you through a "dummy's" step-by-step process, explaining each facet along the way, and will register all of the necessary paperwork for you. This is an alternative to hiring a lawyer, which will easily cost twice the amount of money for the same exact end result.

As a starting enterpreneur or business owner, using an online service to form your LLC is a smart, quick and easy way to get started, without having to hunt down the proper documentation for your state filings and other government documents. If you're interested in forming an LLC on your own, be sure to visit your state's small business section and read about the process that's involved.

There's no doubt that beginners in the world of LLCs have many questions about the process, which will be overwhelming at first. For an all-inclusive, step-by-step beginner's explanation of the LLC registration process, visit Start Your LLC. This completely free guide was written by LLC owners, and will tell you everything you need to know, from registration issues, to management, accounting, banking and maintenance of your LLC! It will also compare the differences and similarities between LLCs and other entities, like corporations and sole proprietorships.