# Sole Proprietorship vs. LLC



## SteffJay (Mar 2, 2012)

I am looking to create my business, and I'm getting very mixed reviews on whether to file as a Sole Proprietor or as an LLC. I'll be honest, when it comes to the business side of things, I am very new. And before I start speaking to banks and lawyers, I'd like to have a little bit of an idea of what I'm talking about and what I'm looking for. 

So I was just hoping some of you can tell me what you've done, and how it's worked out for you?


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## The_Traveler (Mar 2, 2012)

I had three LLCs (non-photography but a litigious field) just because of the issue of limited liability.
It cost $, as opposed to a sole proprietorship but it was worth it.


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## jwbryson1 (Mar 2, 2012)

From a tax standpoint, a sole proprietorship is generally identical to a single member LLC which is treated as a "non-entity" under US tax laws.  From a liability standpoint, you will want to be incorporated to provide a level of protection between yourself and your assets.


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## 12sndsgood (Mar 2, 2012)

something im looking into as well. from what ive read so far i have been leaning towards an L.L.C.


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## SteffJay (Mar 2, 2012)

Hmm... it seems like an LLC keeps the individual better protected.


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## KmH (Mar 2, 2012)

If it was that simple, but it's not.



> If there is only one member in the company, the LLC is treated as a "disregarded entity" for tax purposes, and a*n individual owner *would report the LLC's income or loss on Schedule C of his or her individual tax return.[/uote]
> 
> Starting a Business | SBA.gov
> 
> ...


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## Bitter Jeweler (Mar 2, 2012)

Honestly, talk to *a few* accountants.

You get a real mixed bag of what they say. *Trust me*. 
Hear what they have to say, understand it, and then you may have more questions to help you decide.


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## SteffJay (Mar 2, 2012)

KmH said:


> Got a store front studio? A home based studio? Home based business, but no studio? Have you talked to an insurance agent, accountant, attorney yet?
> 
> Are you just starting to write your business plan, or have you been working on it for a while now?



I'm just starting out. I've been working freelance for a while, but I'd like to have something more concrete. At this point, it's a home based business that I'd like to develop into a studio at some point. I've been doing research to start writing a business plan. I'm taking it very slow. I'd like to have a really good sense of everything and be prepared before I jump in to anything.


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## jwbryson1 (Mar 2, 2012)

KmH said:


> If it was that simple, but it's not.
> 
> 
> 
> ...


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