What are the benefits of converting a sole proprietorship to an LLC?

Converting a sole proprietorship to an LLC provides liability protection and separates business and personal finances.

Save 90% on your legal bills

Benefits of Converting to an LLC

A sole proprietorship is a business owned and operated by one individual, with no distinction between the business and the owner's personal assets. However, as a business grows and expands, it may become necessary to convert to a more formal business structure, such as a Limited Liability Company (LLC). In this article, we will explore the process of converting a sole proprietorship to an LLC, including the benefits, requirements, and steps involved.

One of the primary benefits of converting a sole proprietorship to an LLC is the protection of personal assets. As a sole proprietor, your personal assets are at risk in the event of business debts or lawsuits. An LLC, on the other hand, provides a level of liability protection, shielding your personal assets from business-related risks.

Another benefit of converting to an LLC is the ability to separate business and personal finances. With an LLC, you can open a business bank account, issue stock, and file taxes separately from your personal finances. This can help you maintain a clear distinction between your business and personal life.

Legal help, anytime and anywhere

Join launch list and get access to Cimphony for a discounted early bird price, Cimphony goes live in 7 days
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Unlimited all-inclusive to achieve maximum returns
$399
$299
one time lifetime price
Access to all contract drafting
Unlimited user accounts
Unlimited contract analyze, review
Access to all editing blocks
e-Sign within seconds
Start 14 Days Free Trial
For a small company that wants to show what it's worth.
$29
$19
Per User / Per month
10 contracts drafting
5 User accounts
3 contracts analyze, review
Access to all editing blocks
e-Sign within seconds
Start 14 Days Free Trial
Free start for your project on our platform.
$19
$9
Per User / Per Month
1 contract draft
1 User account
3 contracts analyze, review
Access to all editing blocks
e-Sign within seconds
Start 14 Days Free Trial
Lifetime unlimited
Unlimited all-inclusive to achieve maximum returns
$999
$699
one time lifetime price

6 plans remaining at this price
Access to all legal document creation
Unlimited user accounts
Unlimited document analyze, review
Access to all editing blocks
e-Sign within seconds
Start 14 Days Free Trial
Monthly
For a company that wants to show what it's worth.
$99
$79
Per User / Per month
10 document drafting
5 User accounts
3 document analyze, review
Access to all editing blocks
e-Sign within seconds
Start 14 Days Free Trial
Base
Business owners starting on our platform.
$69
$49
Per User / Per Month
1 document draft
1 User account
3 document analyze, review
Access to all editing blocks
e-Sign within seconds
Start 14 Days Free Trial

Save 90% on your legal bills

Start Today