Sole proprietor limited company

Is a sole proprietorship a corporation?

A sole proprietorship is not like an LLC (limited liability company) or a corporation in that it is not a separate legal entity from the owner. However, many sole proprietors end up turning their businesses into LLCs later on when they’re ready to scale up. There are no forms to file or fees to pay when you start a sole proprietorship.

Is a sole proprietorship a business name?

A sole proprietorship often uses the owner’s name as the business name, though sole proprietorships can also operate under a brand name or trade name. What is an LLC?

Is a sole proprietorship a limited liability company?

A limited liability company is a business structure that shields members from personal responsibility of the LLC’s debts and liabilities, whereas owners of sole proprietorships are fully responsible for the company’s debts and liabilities. What is an example of a sole proprietorship?

Should I start a sole proprietorship or a limited liability company?

When you're starting a new business, it's important to set up the right business structure. Most small business owners favor either a sole proprietorship or a limited liability company (LLC). But how do you know which one is the right choice for you?

What is a sole proprietorship & how does it work?

A sole proprietorship is an unincorporated business that’s owned by the individual running it. A sole proprietorship is the default choice for anyone who runs a business but hasn’t set up another formal business structure like an LLC. As a sole proprietor, there’s no separation between your personal and business assets and expenses.

What is the difference between a sole proprietorship and an LLC?

Sole proprietorships and limited liability companies (LLC) are two of the most common business structures for individuals and small businesses. A sole proprietorship is the simplest and requires minimal paperwork. An LLC requires upfront paperwork and costs but could provide your business long-term benefits that make the investment worth it.