sole proprietor to LLC

Many small businesses get their start as a sole proprietorship. After all, it’s the default business structure. If you’re a single business owner and never filed any official formation paperwork with the state, then you’re operating as a sole proprietorship.

There comes a time when a sole proprietor wants to formalize the business. Perhaps you realized that your side hobby is now a legitimate and blossoming business. Perhaps you realized that operating as a sole proprietorship puts your personal savings and assets at risk should your business incur any debt or be sued. Or maybe you want to take on a new client who requires you to operate as an LLC or corporation.

No matter the reason, the bottom line is it’s affordable and relatively simple to create a Limited Liability Company (LLC). And, there won’t be many changes in the way you operate your business. On the plus side, the LLC puts separation between your business and your personal assets and you’ll have more flexibility in how


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Source: Small Business Trends