If I remember correctly, proprietorships can be dangerous because there is no separation of liability between you and your company. With an LLC, your personal liability is limited, so, for example, if your business gets sued they can't come after your personal assets such as your house. I'd say that's worth going through the trouble for.
On Jun 25, 2010, at 6:42 AM, Tony Ingraldi wrote: > I personally operate as a sole-proprietorship which has minimal legal > start-up costs (the cost of a "Doing Business As" filing and a business > license in your locality.) I've thought about converting to an LLC, but I'm > not convinced that there are any advantages in that structure for what I'm > doing and the complexity of the tax situation generally increases as you move > up the business scale from sole-proprietorship.
