Multi-member LLC vs. Sole Proprietor

When you're selecting the business structure for your small business, you'll need to know what the benefits and primary differences are. The entity for your business determines how you pay your taxes, and also the type of responsibilities if a situation of liability were to arise. Most business owners begin as sole proprietors, but can easily transition into a Multi-member LLC structure for a variety of benefits. Industry liability is a key factor in the decision process; how much are you willing to be personally liable for, and how much would you rather have become a part of the business?

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