This guide explains how an LLC vs. sole proprietorship differs in terms of formation, operations, management, taxes and legal protection. Many, or all, of the products featured on this page are ...

A sole proprietorship is a business that is owned and operated by an individual person – it’s one of the easiest and most common types of business for individuals to set up.

A sole proprietorship is very different from a corporation, a limited liability company (LLC), or a limited liability partnership (LLP), in that no separate legal entity is created.

A sole proprietorship is easy to start as it requires minimal paperwork and no special tax forms. Personal assets are at risk in a sole proprietorship since the owner and business are legally one ...

As with any business structure, a sole proprietorship does have its drawbacks to consider—especially if you’re making the decision between sole proprietorship vs. LLC. These include: ...

A sole proprietor is someone who owns a business independently and hasn’t registered it as another type of business entity. Many sole proprietorships never register with the state, but it is ...

Starting a sole proprietorship is a low-effort endeavor. In most states, you won’t have to register any paperwork unless you’re operating under a fictitious name or “doing business as” (DBA).

Sole proprietorships and LLCs can both work for single owners of a business. LLCs are more expensive to set up and maintain but provide liability protections that sole proprietorships do not.

Starting a business is a significant step, and one of the most crucial decisions you'll make is choosing the right legal structure. The structure you select will impact your taxes, ...

Things change in business, and there may come a time when you want to switch from a sole proprietorship to an LLC. Perhaps you’re working with an LLC service, adding employees to your small ...