Sole Proprietorship

Different legal structures have have their pros and cons.

I learned about legal structures for businesses. There are many types and the ones I learned about are sole proprietorship, partnership, LLC, corporation, and s-corporation.

Sole Proprietorship is the easiest to start. You literally give yourself a name and start doing business, you don’t need to fill out forms or get licenses with the government. You are personally liable for anything that happens in your business. So, if someone sues you, everything you own is potential collateral for the case. I felt that I was running a company with low enough risk that I did not need to become an LLC, which is Limited Liability Company, or any other sort of entity. LLC is an entity where your liability is limited, like a corporation; in other words your personal items like your home and car are not collateral if you get sued.

There are great resources through state government websites to help you decide what is best for your company. In Idaho I used idahobizhelp.org. I also used a blog called “Do I need a business license for an online business?”

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