LLC for Business – What You Need to Know
In the vast landscape of business structures, Limited Liability Companies (LLCs) stand out as a versatile and popular choice for entrepreneurs. Offering a unique blend of flexibility and protection, LLCs have become the go-to option for many aspiring business owners. Not to mention, they are extremely simple to set up and a very affordable option.
Many startups opt for the LLC route right from the beginning. The allure of an LLC’s simplicity and ease of setup is undeniable, making it an attractive choice for those ready to get a jumpstart on their business venture.
We’re no strangers to the vibrant tapestry of startups. While many ventures kickstart their journeys as Limited Liability Companies (LLCs), we often find ourselves guiding them through the complex terrain of potential transitions, helping them make informed choices based on their unique needs and long-term goals.
In this article, we’ll delve into the key considerations surrounding LLCs to help you make an informed decision when setting up your small business, lifestyle business, or high-growth company.
What do I need to know about an LLC business structure?
Let’s break it down simply. First, the name says it all. With an LLC, you (as the owner) have limited personal liability for business debts. This means that nobody can come after your personal assets if your business ever finds itself in deep waters. Within your LLCs, you can be a single member, or have multiple members.
Next, when setting up your LLC, you have more flexibility than you would with other business structures. LLCs have fewer formalities compared to corporations, giving you the freedom to structure things in a way that you want for your business.
You will need to define the Operating Agreement which states how the business is run, member roles, and financial arrangements. You will also need to identify Management to indicate who the decision makers are: management will either be indicated as member-managed for all members to share in decision-making, or as manager-managed to designate a singular manager to make decisions on behalf of the company.
When it comes to taxes, LLCs are usually pass-through entities for tax purposes which means that profits and losses pass through to the members’ personal tax returns.
Remember, while LLCs do offer protection, the specifics can vary. It’s always wise to double-check your work with a lawyer.
Is an LLC the right choice for my business?
When deciding if an LLC is right for your business, you need to consider your entrepreneurial goals. Are you envisioning a modest, family-run enterprise or are you aiming for aggressive growth with institutional investments? Ask yourself the following:
- What are my Long-Term Business Goals?
- How Important is Personal Asset Protection?
- What is the Role of Investors or Partners?
- Do I Envision Complex Ownership and Governance Structures?
Entrepreneurs who are looking to establish a lifestyle business or a cozy family-run enterprise where high growth may not be the primary objective will typically find that an LLC suits their needs. The inherent protections offered by an LLC’s limited liability shield provide peace of mind, ensuring that personal assets remain sheltered even in the face of business uncertainties.
Lifestyle businesses and enterprises with localized ambitions may find the LLC’s protective shield sufficient for their long-term objectives. For these ventures, the flexibility of an LLC – the ability to tailor ownership structures and governance models – remains a powerful tool that aligns seamlessly with its vision.
However, if you already know from the get-go that you will want to raise venture capital or will have complex ownership, you may consider setting up your business as a C-Corp.
Pivoting Towards Growth: The Path to a C-Corp
Keep in mind that you don’t have to know the answers to all the previous questions from day one. Plans change over time and you can always restructure your business as needed.
A C-Corporation (C-Corp) emerges as an appealing option for companies preparing to raise institutional funds. The 1202 tax code “allows capital gains from qualified small business stocks to be excluded from federal tax.” This unique advantage can’t be overlooked, especially when the venture plans for substantial growth and the need for external investors.
Crafting a Tailored Path: RevRoad’s Expertise
As startups evolve and scale, the decision-making process can be complex. Navigating the legal documents needed to ensure a structurally sound foundation for your business can be daunting. That’s where sweat-equity firm RevRoad steps in as your trusted advisor and partner.
RevRoad’s role is not only to provide guidance but also to facilitate the strategic decision-making process. Our Legal team has witnessed the unique advantages and disadvantages that both LLCs and C-Corps offer and can help startups understand the nuances, risks, and rewards associated with each.
RevRoad’s seasoned team is here to work shoulder-to-shoulder with you and attain the full value of your startup. Our goal is to empower entrepreneurs with the knowledge, insights, and team needed to make a difference in the world. Let’s start by setting up your organization with the right structure. Contact our investment team to see if your company is a good fit for the RevRoad program.
RevRoad Entrepreneur Competition Fall 2023 Winners Announced
RevRoad is proud to announce the winners of the Fall 2023 semi-annual Entrepreneur Competition, sponsored by Central Bank.
As a beacon for emerging startups, both in high-growth and lifestyle sectors, the competition provides a platform for participants to showcase their innovations. With an impressive lineup of judges, this competition is an ideal arena for entrepreneurs to forge connections, receive valuable feedback, and hone their pitching skills.
The Fall 2023 edition broke the standing record of applicants, bringing in over 200 startups nationwide. From this pool, the top 36 companies were invited to attend the in-person pitch competition on Oct 14, 2023 at the UVU Keller Business Building.
Of those top companies, the following companies received awards with over $30,000 of value.
$15,000 Central Bank Grand Prize winner – Gnara
Gnara is on a mission to help everyone answer nature’s call (quite literally) via our patented GoFly zipper technology. We’re revolutionizing women’s clothing and adapting it for everyone’s needs—from hiking to serving on the front lines—through innovative and inclusive design that makes people feel safe, comfortable and confident to explore as they are, whether at work or at play.
$5,000 Runner up – Team Nation Sports
Team Nation Sports builds software that turns sports learning into games on phones. The company believes that if you can learn how to learn football, you can learn how to learn anything.
$2,500 3rd place – ILLA
ILLA is an AI-driven adventure platform for women+ who walk, run, ski, hike, bike, climb, paddle, surf, brap, and more!
$1,000 Fan Favorite – KAXI
Kaxi is a women’s hair accessory company that focuses on both style, function, and most importantly — hair health!
WTCUtah Trailblazer Award (Value) – Nani Swimwear
Nani embraces strength and confidence with active swimwear that not only looks good but feels good. Designed with adventurous women in mind, Nani is made for movement. Nani is the Hawaiian word for “beautiful”, and our mission is to create active swimwear that empowers women of all shapes and sizes to #livenani by seeking adventure, being kind, and striving to give back.
Kiln Membership Award (Value) & Thread Consumer Product Award (Cash) – Powder Baby LLC
Powder Baby LLC provides dry shampoo that is made of 5 natural , vegan, ingredients. The products are packaged in a paper bottle that is completely biodegradable and healthy for the environment. It is the only dry shampoo on the market to come in 5 unique colors that match your hair shade and leave absolutely no residue. Because the dry shampoo is made with only powder and no aerosol, it is more effective in absorbing grease long term and keeping your hair healthy, smooth, and looking clean.
We Congratulate the winners and offer our heartfelt gratitude to everyone that participated in this pitch competition!
We couldn’t have done it without our incredible judges, sponsors Central Bank of Utah, Squire & Company, PC and RevRoad Capital, and all the competitors, team members, and community who came together.
For information about future RevRoad Entrepreneur Competitions, please visit ecomp.revroad.com.
RevRoad Partners with Kiln to Open Doors of Provo Coworking Location This Fall
PROVO, Utah, Oct. 5, 2023— RevRoad, a sweat-equity firm for startup companies, is proud to partner with Kiln to host entrepreneurs in a coworking space at their new location at River’s Edge on University development in Provo, UT. The new flex-office opened its doors to membership holders on September 18, 2023, allowing the RevRoad team, RevRoad portfolio companies, and other local startups to claim their new office space. To mark the beginning of this new partnership, RevRoad and Kiln will host a panel discussion on Friday, October 20th, from 3:30 to 4:30 PM, featuring Arian Lewis, CEO & Co-Founder of Kiln, alongside Derrin Hill, CEO & Co-Founder of RevRoad. They will share their insights about entrepreneurship, partnerships, and growing into new markets.
In partnership with Brighton Development, Kiln’s 40,000 square-foot, handcrafted facility provides an amenity-rich, all-inclusive workspace experience for creatives, startups, and enterprise teams. This co-working space is set to become a center of gravity for Provo’s vibrant entrepreneurial community. This beloved corner of Provo, following years of demolition and reconstruction, is now a revitalized hub for visionary entrepreneurs and small businesses.
“I have always loved Provo, not only because I was raised here, but also because it has been home to so many impressive founders and companies,” says Arian Lewis, CEO of Kiln. “We couldn’t be more excited to introduce the Kiln community to all the good that this ecosystem already has to offer. We were very impressed with Brighton Development’s vision and creative plan for River’s Edge. What we are building together in Provo will be world-class, showcasing the future of flexible and experiential workspace.”
Provo continues to thrive with a near-uninterrupted title of America’s “top-performing city” in annual economic rankings by the Milken Institute. Its active population, strong talent pipeline, and dynamic entrepreneurial scene draws hugely successful companies like Vivint and Qualtrics, while nearby Brigham Young University and Utah Valley University both feature impressive entrepreneurial centers and mentorship programs.
“The days of Plumtree Plaza lying dormant as an eyesore to our community are over with the transformative development well-underway at River’s Edge on University,” says Provo Mayor Michelle Kaufusi. “Creating economic vibrancy requires the right timing and team. With both now in place, our promise to reinvent spaces for new generations to enjoy is underway. Kiln is an ideal example, with their innovative work concept not only expanding job opportunities, but re-envisioning the entire industry.”
The standalone facility is conveniently located just ten minutes from I-15, centered between the major thoroughfares of State Street and University Blvd. The 28-acre mixed-use development features popular restaurants and shops, as well as premium apartment units (The Lofts at River’s Edge) and townhouse style condos (The Towns at River’s Edge). As the anchor tenant of River’s Edge development, Kiln’s flexible office and coworking community will provide a full-scale list of amenities for individuals and teams of 1–100. Kiln offers club memberships for individuals, private offices for small teams, and enterprise suites for large teams.
RevRoad CEO Derrin Hill said about the partnership, “Our mission at RevRoad has always been to empower startups and entrepreneurs, working shoulder-to-shoulder with them on their journey to success. Kiln shares this commitment and demonstrates that by creating a vibrant ecosystem of collaborative workspaces and community engagement. It’s the perfect marriage of our shared values and vision, where innovation thrives and entrepreneurs flourish. Together, we are redefining what it means to support and nurture the entrepreneurial spirit, and we couldn’t be more excited about the incredible possibilities that lie ahead.”
Many hands have been involved in helping this project come to life, including The City of Provo, Nate Pugsley of Brighton Development, Eric and Brycen Woodley of Woodley Real Estate, Lance Pendleton of Mountain West Commercial, and Dan Teed and Taylor Carpenter of Mint.
Kiln and RevRoad intend to host a myriad of events that bring the community of entrepreneurs together, many of which will be open to the general public. Learn more at kiln.com and revroad.com/events.
Kiln Provo address: 2250 N University Pkwy, Provo, UT 84604.
For press inquiries contact kyle@kiln.com and brittany.ouimette@revroad.com.
About Kiln
Kiln is currently home to more than 4,000 members and 1,200 businesses across 12 locations in Utah, Colorado, California, Idaho, and Oregon. Founded in 2018, Kiln is expanding across the Mountain West and West Coast, with several additional locations under development in varying stages. A full list of locations can be found here. Kiln’s founding team, composed of co-founder/CEO Arian Lewis and co-founder/creative director Leigh Radford, has been at the forefront of design, operations, and innovation within the flex-office and coworking industries for the better part of two decades. Lewis and Radford have collaborated on the launch of prior coworking brands, with international locations spanning London, New York, Tel Aviv, Cape Town, Mumbai, and Lithuania. Learn more at kiln.com.
About RevRoad
RevRoad is a sweat-equity partner for scaling companies, dedicated to achieving the full value of startups. The company empowers portfolio companies to maximize profitability, get to market faster, and create a solid foundation for their venture. RevRoad team members work shoulder-to-shoulder with portfolio companies, enabling businesses to scale efficiently while keeping founders in the driver’s seat. Visit revroad.com to learn more and apply to become the next portfolio company.
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Pitch Deck Template – Get Ready to Pitch Investors or Compete in a Pitch Competition
RevRoad Awarded Top 30 Fastest Growing Companies In Utah Valley
Provo, Utah, Sept. 21, 2023—RevRoad, a sweat-equity partner for startups, proudly announces its recognition as one of the top 30 Fastest-Growing companies in Utah Valley at the UV50 Awards hosted by Utah Valley BusinessQ. This annual event distinguishes businesses for their exceptional growth and remarkable achievements in the region. RevRoad secured 14th place, showcasing a remarkable 3-year growth rate of 1,019%, as calculated using the Inc. 5000 equation: [(Recent year revenue – 2022) – (base year revenue – 2019) / (base year revenue – 2019)] x 100 = total growth percentage.
Founded in 2017 by a group of visionary entrepreneurs including Derrin Hill, Amy Caldwell, Bruce Hassler, A.J. Rounds, Jason Caldwell, and Bart Skalla, RevRoad has emerged as a force to be reckoned with in the startup ecosystem. With a mission to redefine startup support, the company has been instrumental in ensuring that entrepreneurs receive the full spectrum of resources, far beyond just financial backing.
In just a few short years, RevRoad has built a diverse portfolio of 76 companies, collectively valued at over $1.7 billion. In an industry where the odds are often stacked against entrepreneurs, RevRoad has managed to reverse the narrative, enabling a portfolio success rate of 68%.
A.J. Rounds, co-founder and CMO of RevRoad, expressed his enthusiasm for the company’s growth and mission, stating, “Our overhead goal is to be the number one venture capital/venture services portfolio in the world. We firmly believe that with the right support and resources, any entrepreneur can achieve their dreams.”
Offering advice to aspiring entrepreneurs, Rounds added, “Recognize that success requires a significant investment of time. You have to be willing to make this a priority in your life, professionally and personally, and do what it takes to make it happen.”
RevRoad’s extraordinary growth and unwavering commitment to nurturing entrepreneurial success have solidified its position as a guiding force in Utah Valley’s business community. As the company remains dedicated to empowering startups and facilitating innovation, its primary goal is to help more entrepreneurs build sustainable businesses that address real-world challenges.
About RevRoad
RevRoad is a sweat-equity partner for scaling companies, dedicated to achieving the full value of startups. The company empowers portfolio companies to maximize profitability, get to market faster, and create a solid foundation for their venture. RevRoad team members work shoulder-to-shoulder with portfolio companies, enabling businesses to scale efficiently while keeping founders in the driver’s seat. Visit revroad.com to learn more and apply to become the next portfolio company.
Damon Deru Joins Orkid Solutions, Inc. as Chief Product Officer, Spearheading Innovation for Small Business Success
PROVO, Aug. 30, 2023—Damon Deru, seasoned entrepreneur and business mentor, was recently appointed as Chief Product Officer (CPO) to Orkid Solutions, Inc., an HR services aggregator designed for small businesses. In this strategic role, Damon will play a crucial part in ensuring that Orkid’s suite of services continually meet the evolving needs of small business owners.
Regarding the hire, Justin Atkinson of the Orkid Board of Directors stated, “As we continue to look for ways to serve the small business community, Damon was the perfect fit to ensure that our services will focus on helping small businesses scale their employee and administrative offerings. Having built small businesses himself, Damon understands the unique struggles that small business owners face, and plans to focus his efforts on uniting technology and white glove service in a way that will help small business owners thrive.”
Deru began his career as a trader and Registered Investment Advisor at a prominent wealth management firm based in Salt Lake City, UT. In this role, Deru recognized the prominent need for advanced trading software tailored to the intricate demands of wealth management, which sparked his transition to technology entrepreneurship, founding his first tech venture, TradeWarrior.
Established in 2010, TradeWarrior quickly gained loyalty and recognition from wealth management firms nationwide for its innovative trading software. This remarkable trajectory led to a merger in 2017 with Chicago-based fintech startup, Oranj, that was eventually acquired by global financial technology company SEI. Following this successful venture, Deru’s started AdvisorPeak with a focus on building advisor technology that anticipates and streamlines an advisor’s trading operations. In 2021, AdvisorPeak was acquired by Addepar, a leading wealthtech firm managing over $4 trillion in assets on its platform.
Deru then stepped into a new role as product advisor and co-founder of ControlQore designing project management and payment software for general contractors. Deru later co-founded and served on the advisory board of BroodStack, a company that offers outsourced software development services with offices in Utah, South Dakota, and Trivandrum, India. Following his time at BroodStack, Deru brought his skills to the nonprofit sector as a board member for EnLevo, aiding in technology and fundraising efforts in support of their mission to build more sustainable lives for Guatemalans in remote villages.
“I’m eager to join Orkid Solutions and contribute to the growth and success of small businesses,” Deru shared. “Orkid’s dedication to empowering small business owners resonates deeply with me, and I’m eager to merge my experience and insights with their forward-looking approach. By combining technology and unparalleled service, we’ll forge new paths for small business success and longevity.”
Deru’s appointment as Chief Product Officer marks a significant milestone in establishing Orkid’s organizational structure and service foundation.
About Orkid Solutions
Orkid Solutions, Inc. focuses on relieving small business owners of daily burdens by identifying blind spots and filling operational gaps. Following a comprehensive analysis, Orkid strategically connects business owners with its network of top-vetted partners, eliminating guesswork and equipping executives with the tools to efficiently scale their operations and adapt to ever-changing needs. Visit orkid.com to learn more.
RevRoad Appoints Jenney Rees as Chief Operating Officer
Jenney Rees joins RevRoad as COO and newest executive team hire, elevating organizational operations.
PROVO, Utah, Aug. 29, 2023—RevRoad, a sweat-equity firm for startup companies, proudly welcomes Jenney Rees as Chief Operating Officer (COO). With a proven track record of distinguished accomplishments in both the public and private sectors, Rees brings a unique blend of leadership expertise to her role and is poised to drive the company towards a future of innovation, collaboration, and growth.
“On behalf of the board and the entire RevRoad team, it is my pleasure to welcome Jenney Rees as the newest member of our executive team,” said Derrin Hill, CEO of RevRoad. “Jenney’s track record of remarkable achievements and her dedication to fostering positive change align seamlessly with RevRoad’s mission and values. Jenney’s expertise will undoubtedly bring a fresh perspective to our operational strategies, amplifying our efforts to drive growth and success for startups.”
Formerly serving as an Executive Director in the Governor’s cabinet at the State of Utah, Rees led a state agency with over 1,300 employees across nine divisions and oversaw a budget of $1 billion. As a staunch advocate for transformational governance, Rees championed policies, programs, and budgets that have contributed to greater collaboration across multiple divisions and improvement of service delivery. Her pivotal role in consolidating diverse state agencies into a streamlined department showcased her ability to optimize resources and enhance operational efficiency. Rees also served as both a member of the city council and mayor of Cedar Hills, Utah, and in 2020 was recognized by Best of State for her role as mayor.
In the private sector, Rees excelled as a dynamic leader, helping create tremendous growth in startup technology companies. At MediConnect Global, her ability to develop and implement efficient processes helped expand their medical coding division. With her leadership, this division quickly became the largest revenue generator for the organization, contributing to the eventual acquisition of the company for $348 million in 2012. In 2022, Rees was recognized by Utah Business Magazine as part of its 30 Women to Watch series. More recently, Rees has been serving as COO of Orkid, a small-business solutions startup and RevRoad portfolio company that will launch later this year. Rees will continue to support Orkid through its initial launch.
“I am thrilled to return to the private sector through RevRoad, returning to my roots in Utah’s tech startup scene,” said Rees. “The company’s commitment to helping startups thrive resonates deeply with me, and I am excited to contribute to RevRoad’s vision of fostering startup success and its overarching mission of creating a lasting positive impact.”
The appointment of Rees as COO marks a pivotal milestone in RevRoad’s growth, as well as its ability to provide industry-leading solutions for startup ventures.
About RevRoad
RevRoad is a sweat-equity partner for scaling companies, dedicated to achieving the full value of startups. The company empowers portfolio companies to maximize profitability, get to market faster, and create a solid foundation for their venture. RevRoad team members work shoulder-to-shoulder with portfolio companies, enabling businesses to scale efficiently while keeping founders in the driver’s seat. Visit revroad.com to learn more and apply to become the next portfolio company.