On the way to opening your own business, the first question you will face is the choice of ownership. A sole proprietorship and an LLC are two of the most common forms of business that have quite a few differences between them. How do I choose the one that is right for me?
The main difference between a sole proprietorship and an LLC is its legal status. A sole proprietorship is a person who has registered as an entrepreneur. A sole proprietorship has no separate property, so in case of bankruptcy you will have to sacrifice your personal belongings. An LLC is a separate legal entity, with its own rights, obligations and property. You can learn about how to start an llc from the article and it will not be very difficult to do so.
If you are going to do business alone, a sole proprietorship is fine. The entrepreneur can work without employees and be responsible for everything himself. To start a business with friends, you have to register an LLC.
