What are the pros and cons of an LLC vs sole proprietorship?

H

HHBP

guest
A few reasons why an LLC is better than a sole proprietorship come to mind and these are:
  • You can access more funding with a limited liability company versus a sole proprietorship
  • You also get more legal protection with a limited liability company compared to a sole trader
 
N

NotMyName

guest
This is a very nuanced question. But, if you are self-employed, there are zero benefits to being a sole proprietor - tax-wise, protection-wise, anything. The only benefit I can remotely think of is not having to file annual reports.
 
N

Natalia Delgadillo

guest
An LLC is its entity you are you and your sole proprietorship is you. Eventually, you can build your LLC to survive on its own. So way easier to transfer business or a bunch of other things like credit etc.
 
P

Pyry Niskanen

guest
LLC gives you access to better resources. For example, having business credit gives you more money to grow without trashing your personal credit. Also, if properly managed, there is a limited liability (hence the name) for you if the business gets into trouble. And operating under the LLC tends to give you more credibility with both customers and peers
 
L

Lina Lamont

guest
A sole proprietorship, in the context of e-commerce, is a setup for tax and liability lawsuits down the road. Structuring your business the right way is crucial in protecting you and your assets.
 

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