What's the difference between sole proprietor and an LLC ?

Answer 1

An LLC is owned by its members. They are analogous to partners in a partnership or shareholders in a corporation, depending on how the LLC is managed. A member will more closely resemble shareholders if the LLC utilizes a manager or managers, because then the members will not participate in management. If the LLC does not utilize managers, then the members will closely resemble partners because they will have a direct say in the decision making of the company.

A member's ownership of an LLC is represented by their "interests," just as partners have "interest" in a partnership and shareholders have stock in a corporation.

Sole Proprietor - there is only ONE owner - It is possible for either the husband or the wife to be the owner of the sole proprietor business. When only one spouse is the owner, the other spouse can work in the business as an employee. If the spouses intend to carry on the business together and share in the profits and losses, then they have formed a partnership.

Answer 2

In a sole proprietorship there is one proprietor and that they not in common words possibility the corporate' components additionally they possibility their own components with the help of utilising actuality they're in result one and the same. In a partnership you have the same ingredient possibility smart as a sole proprietorship with the only distinction being that there is greater beneficial constructive than one proprietor. In an LLC, the owner of the corporate in common words damaging components the corporate components and their own components outdoors the corporate are truthfully not in possibility. consequently the corporate may well be perspectives as harm unfastened the owners who in certainty cope with the corporate. In a employer the corporate is punctiliously harm unfastened the owners who in common words possibility what they have invested interior the corporate. the greater suitable consumer-friendly variety on the instant for human beings to undertake is llc with the help of utilising potential for tax applications and the defend practices afforded to the owners very own components.

Answer 3

LLC is a "corporation" sort of and sole proprietor has one owner
LLC offers more tax benifits

Answer 4

Here is a good resource for the info you want:

http://www.bizfilings.com/learning/index.asp