Sole or LLC

[lynweber]

How many of you are sole proprietors or are you an LLC? Currently I am a sole. What are the reasons you chose to do what you do?

[candleman]

LLC for 2 reasons

1. its harder to get sued for your personal $$$
2. its harder to mix business and personal finances.

[ARKreations]

Originally Posted by candleman

LLC for 2 reasons

1. its harder to get sued for your personal $$$
2. its harder to mix business and personal finances.

Yep - same here.

[kirbinster]

LLC or S-Corp, check with your accountant and lawyer for the best format for your unique needs.

[Jim Bryant]

Originally Posted by candleman

LLC for 2 reasons

1. its harder to get sued for your personal $$$
2. its harder to mix business and personal finances.

True, true, true, true true!

[Browncoat]

I think you could check 100 different sources and 98% of them would recommend forming an LLC for the reasons already listed.

This is serious business, and something you should talk to a lawyer or accountant about. You can form an LLC very inexpensively with a service like legalzoom.com, but a legal consultation to find out your individual needs would be worth the expense.

[neubauer6]

I have a bachelor's in accounting and will tell you that an LLC is the way to go. You can safeguard your own assets and still have an easy time filing your taxes!

[prince]

I second that. However, I am in the process of starting my business but don't have clients ready and not sure how long will it take. I don't have the funds to hire a lawyer or accountant to walk me through the registration and licensing process. I have decided to go Sole Proprietorship and carry liability insurance till I am well established. I don't do weddings so the risk is comparatively lesser, which allows me to prolong going for LLC. In an ideal situation I'd have gone with LLC.

Choose what's best for you.

Good luck!!

[Niresangwa]

LLC, for the reasons above. It was cheap and simple, and just used my state's online services to do it.

[navcom]

I agree completely...but a word of caution. I have a business acquaintance who ran a small LLC. He was in an accident with his company vehicle and was sued. He lost his business AND his house. The fact is, if they are going to sue you, there is no real limit. They will follow the money regardless of where it's at. Since he owned a small one-man business, there wasn't much for assets in the business itself. And since he WAS the business, they went after him personally after the business ceased to exist financially.

And in case you are wondering....there wasn't a death nor was there any major injury, just minor scratches to both my acquaintance and the occupant of the other vehicle. There WAS an expensive vehicle involved as well as a claim of "distress" from losing it...the former being the jackpot.

LLC status will protect you to a point, but in today's litigation society, it's not bullet-proof. Just a word of caution.