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3 articles tagged “LLC”.
The key differences between an LLC and a sole proprietorship show up in daily operations and over the life of the business: whose name goes on contracts and bank accounts, how you add a partner, how you borrow, what happens if you sell or step away, and how you close. An LLC is a separate entity; a sole proprietorship is simply you.
A sole proprietorship is the simplest and cheapest way to run a US business, but your personal assets are exposed to business debts and lawsuits. An LLC costs more to form and maintain, yet it separates business liabilities from your personal property. Both are taxed the same way by default, so the choice mostly comes down to risk.
To register a small business in the US, choose a structure, pick a name, appoint a registered agent and file formation papers with your state. Then get a free EIN from the IRS, apply for any state tax accounts and local licences, and open a business bank account. Most state filings cost under $300.
