Why Should I Change My Business from a Sole Proprietorship to an LLC?

What is the Difference Between a Sole Proprietorship and an LLC?

A sole proprietorship is a business owned and operated by one individual. While it's easy to set up and requires minimal paperwork, it also offers little protection for the owner's personal assets. If the business is sued or incurs debt, the owner's personal assets, such as their home and savings, are at risk.

An LLC (Limited Liability Company), on the other hand, offers several benefits including:

• Limited liability protection: This means that the owner's personal assets are protected in case the business is sued or incurs debt.
• Pass-through taxation: This means that the business income is only taxed at the individual level, rather than being taxed at the business level.
• Flexibility in ownership and management: An LLC can have multiple owners, and the ownership structure can be customized to meet the needs of the business.