Hello, I'm attorney Elizabeth Potts Weinstein. Today, we're discussing whether an LLC or sole proprietorship is the right business entity for you. This video is tailored for single-owner businesses, helping you choose between these two options. While there are many resources advocating for LLCs, it's essential to understand that each business is unique. Let's explore five critical factors to help you decide. 1. Liability Protection An LLC (Limited Liability Company) separates your personal liability from your business. If you operate as a sole proprietor, you and your business are legally the same entity, making you personally liable for any business-related issues. In contrast, an LLC provides a protective bubble, assuming you maintain proper compliance. If your business involves high liability, such as having employees or a physical storefront, an LLC is beneficial. Employees can create liabilities beyond your control, and customer interactions can lead to
Hello, I'm attorney Elizabeth Potts Weinstein. Today, we're discussing whether an LLC or sole proprietorship is the right business entity for you. This video is tailored for single-owner businesses, helping you choose between these two options. While there are many resources advocating for LLCs, it's essential to understand that each business is unique. Let's explore five critical factors to help you decide. 1. Liability Protection An LLC (Limited Liability Company) separates your personal liability from your business. If you operate as a sole proprietor, you and your business are legally the same entity, making you personally liable for any business-related issues. In contrast, an LLC provides a protective bubble, assuming you maintain proper compliance. If your business involves high liability, such as having employees or a physical storefront, an LLC is beneficial. Employees can create liabilities beyond your control, and customer interactions can lead to
No comments