Business registration

[anne50]

This is a rookie question:
Is there a need to register as a LLC?
Or will Sole Proprietor work?

[Arichter]

Sole Proprietor works just fine. Unless you have a really good reason for an LLC, it just adds more cost and complications.

[cNsa5]

@anne50 Hmmm . . .

It’s best if you reach out to your tax advisor/CPA/Accountant, etc. to query on this item, because each State has varying regulations & each tax scenario varies as well.

Better safe than sorry . . .

[anne50]

Thank you so much. And reading the comments, I see you add so much information for us rookies.

[RiverpointeTax]

Since each State’s Business Code is different, you may want to discuss the benefits and risks with an experience a business law attorney in your state.

[cfletcher]

Talk with a S.C.O.R.E or SBA representative, they can discuss that question with you. I have a very limited understanding of all the significant factors on how to structure your business and do not give tax or legal advice. My reason for being a Sole Proprietor was it’s a much simpler for taxation purposes, no annual fees, or accounting reports / filings. The downside of being a Sole Proprietor is the personal liability exposure, if I should face a lawsuit. But that’s why I carry personal liability insurance coverage and E&O insurance.

[anne50]

Thank you That’s food for thought.

[anne50]

Thank you that sounds good

[angela_varvi]

I agree with the other comments on sole proprietor. I had an LLC for rental property and got rid of it for those reasons. That said, I do have an umbrella policy that covers that property, and additional personal liability insurance along with the required bond for my CA notary business.

[anne50]

Thanks so much I appreciate it

[katherine_burton]

I’ve been a sole proprietor for 5 years. No need for an LLC.