I currently operate as a sole proprietor as well - maybe LLC in the future.
Same here. It's hard when you are trying to get everything "right" to know what's the best route for some things.I run my business as a sole-proprietor right now but I would like to either incorporate or become a LLC as soon as posible to protect myself and family.
On the advice of my attorney, I will be forming a single member LLC. It's not that expensive (in my state it costs $100) and it provides almost 100% of the protection of the corporate veil. The only personal liability that I would have is:
In order to prevent losing the investment in my business, I will be taking out business insurance.
- If I were to make a personal quarantee on a loan;
- If I did not pay my taxes;
- If I committed negligent or intentional acts;
- If I breach fiduciary duty; or
- If I blur the boundaries between the LLC and myself.