Sole Proprietorship VS LLC

[vkblondie]

Good Afternoon Everyone -
I am new to this and new to the industry. Which is better for you all - Sole Proprietorship or an LLC?
Valerie

 

[gillumhouse]

It depends on a lot of things. LLC protects your personal funds but requires other forms and accounting. My suggestion is consult a financial planner. It may sound as if I am ducking your quetion, but I am not.
I am a sole proprietor because when I opened, LLC or anything else was complicated and the business was going to be in my name only (my huband's name was NOT included at his choice). He said it was my business and his name was not needed which turned out to be good years later down the road. As a sole proprietor, I am personally responsible for any debts etc. of the business - if it goes under, so do I.
Much depends on your financial status, your goals, and what you want the business to do.

 

[vkblondie]

It depends on a lot of things. LLC protects your personal funds but requires other forms and accounting. My suggestion is consult a financial planner. It may sound as if I am ducking your quetion, but I am not.
I am a sole proprietor because when I opened, LLC or anything else was complicated and the business was going to be in my name only (my huband's name was NOT included at his choice). He said it was my business and his name was not needed which turned out to be good years later down the road. As a sole proprietor, I am personally responsible for any debts etc. of the business - if it goes under, so do I.
Much depends on your financial status, your goals, and what you want the business to do..

Thank you Very Much - It is currently being Run as Sole Proprietorship and I know my father did the same when he had his business. Since I will also be living on the premises, I was unsure of which was better for me. I will do more digging.

 

[JimBoone]

It depends on a lot of things. LLC protects your personal funds but requires other forms and accounting. My suggestion is consult a financial planner. It may sound as if I am ducking your quetion, but I am not.
I am a sole proprietor because when I opened, LLC or anything else was complicated and the business was going to be in my name only (my huband's name was NOT included at his choice). He said it was my business and his name was not needed which turned out to be good years later down the road. As a sole proprietor, I am personally responsible for any debts etc. of the business - if it goes under, so do I.
Much depends on your financial status, your goals, and what you want the business to do..

Thank you Very Much - It is currently being Run as Sole Proprietorship and I know my father did the same when he had his business. Since I will also be living on the premises, I was unsure of which was better for me. I will do more digging.
.

Just my non legal view
If you have money and your business is maybe just one of many activities perhaps a corporation is the way to go
If your small business is your life and the major sum of your wealth I'm not sure of the advantage

 

[Arks]

My guesthouse is an LLC, but I've asked a few lawyer friends about this and they all say the same thing: a good lawyer can "pierce the corporate veil" and attack the individual assets of the owner of a corporation or LLC.

LLC will give you some protection for your personal assets, but don't expect it to be perfect. It's not.