Q. Sole Proprietor vs. LLC vs. S-Corp
I'm currently a sole proprietor, but as I change business names, I would like to set up a professional business the right way. I'm not sure if an LLC or S-Corp is more appropriate - what are the advantages/disadvantages/liability issues?
Area of Expertise: Law and Legal
Industry: Flowers/Gifts
3 answers | Asked on 02/08/10 by:
Mary Anne Courtney
Federal Way, WA, United States
Answers
Tarah Obaidy
Stafford, TX, United States
LLC is limited liability company. It is sort of like a hybrid between a corporation and sole propietor/ partnership. It is better to have an LLC rather than a corporation due to the fact that you are a sole proprietor (SINGLE OWNER). LLC has an advantage of the ability of passthrough income taxation. However just because of having a LLC, it does not cover you completely. As long as your business is legitiment and you are not being scandaleous, the courts will be easier with you.
Posted on 02/15/10
Renee Getreu
Mount Shasta, CA, United States
Hi Mary Anne - I have a document on this I could fax you, or possibly e-mail if I can find it. If you'd like that, let me know your e-mail and fax number.
Thanks - Renee Getreu - JEDI
rgetreu@e-jedi.org (530) 926-6670, phone
Posted on 02/18/10
Jean Mojo
Cotuit, MA, United States
MaryAnne--take a look at Legalzoom.com. A great site which will help you determine the best one for you. They are quite inexpensive and get rave reviews for their service and professionalism. They have an online "quiz" to help you determine the correct path.
Posted on 03/01/10
