There are many things that you have to think about when you start your own business. You may have a good idea, and have started working on how you are going to bring your dreams into reality, but you also have to think about how you are going to run your business. If you are running a small home business by yourself, perhaps you can just do your taxes accordingly. However, if you are going into business with a partner of any type, you may want to think about an LLC partnership. It is not always necessary, but it might be a good idea.
An LLC partnership means that you and another person are going into business together, and you want to do business under a legal name other than your real names. This is a business name, and the LLC will be known under that name. You may be listed as a partner or whatever role it is that you may be taking, but the LLC partnership name will be what you use for all legal reasons on your business. There are various pros and cons to doing this, all of which you should consider carefully before you decide what you should do.
For one, an LLC is supposed to protect those under it from personal bankruptcy in the event the business were to fold. You can get loans and other funding under your LLC partnership without having to worry about any debt that business comes into becoming your personal problem. In other words, if your LLC partnership fails, it owes the money, but you personally do not have to worry about it. This was how it was a few years ago as I understand it, but that could change at any time. Make sure you talk to a lawyer about the reach and limits of your LLC before you do anything.
Other than for legal reasons, you may want to have a LLC partnership just to keep things going under one name. Hopefully you are going to be successful, and in order to do that, you have to brand your business. As an end, you want everyone to know who you are upon hearing your name. It is much easier to do this when you have a good LLC name that will blanket everything about your business. It will be in your logo, on all business communications, and anything else you do. Branding is one of the best ways to make sure your have your very best chance at success. Plan your LLC partnership name accordingly.
You will need to think hard about what you want your name to be. This is what you will be doing business under. You want something that is catchy and also something that is smart. You also want something that people can use to identify with your business, what you do, or what it is that you sell. Your LLC partnership name could change if you find that it is not working, and you can have your business name different than the LLC if you think that would work better, just make sure they are related in nature so they go together as a package.