Small businesses: Protecting your personal assets with an LLC

Many small businesses start as bootstrapped, one-person operations: just you, your idea, and a whole lot of hustle.

But as your business grows, so do your responsibilities and risks. You might begin taking on bigger projects, handling more income, or working with contractors and vendors. Once you reach this point, it may be time to consider formalizing your business.

Forming a limited liability company, or LLC, is one of the most popular ways to do it.

An LLC is the most common business structure among business owners with fewer than 10 employees. As its name suggests, an LLC offers liability...