Sole Proprietor vs. LLC
15/10/08 13:28 Filed in: Q & A
Q. What Is the difference in a Sole Proprietor and a Limited Liability Company (LLC)?
A. As a sole proprietor, your personal and family assets are exposed to legal action;as a limited liability company, only the COMPANY'S assets are exposed. That is, of course, an oversimplification of the structure. Talk to a business attorney before you decide on a structure, because it is costly to change later. Seek more in depth information about business types from the SBA (Small Business Administration). Look for a lawyer that specializes in small business matters.
A. As a sole proprietor, your personal and family assets are exposed to legal action;as a limited liability company, only the COMPANY'S assets are exposed. That is, of course, an oversimplification of the structure. Talk to a business attorney before you decide on a structure, because it is costly to change later. Seek more in depth information about business types from the SBA (Small Business Administration). Look for a lawyer that specializes in small business matters.