Sole Proprietor vs LLC? What do you do?
Posted in:
Allow Me to Introduce Myself
I've not done a lot of research on this yet, but I believe it boils down to two main things:- cost- liabilityCostTo create an LLC you need to file some paperwork (yourself, through a lawyer, or through one of those websites that do the whole thing for you - can't think of one single name now!). Being in NY means the filing fees are astronomical (for me, at least). If you start as a SP, all you have to do is start working and selling (making sure you follow all the Health Department guidelines, of course).LiabilityIf you file for a LLC, your personal assets are protected (that's the Cliff's Notes on this...the subject is way longer and more complicated than what I am describing here). Say someone eats one of your truffles and gets sick; if you are a SP and gets sued, they can come after your personal assets, including house, car, etc. If you work under a LLC, then only the LLC assets are in danger. Your personal assets are separate from the LLC.I hope this helps you a little.My suggestion: speak with SCORE (
www.score.org ). They are very helpful.
