How to Convert Sole Proprietorship to LLC (& Why You Should in 2019!)

If you started your business as a sole proprietorship, it’s time to start thinking about changing to an LLC. Naturally, there are a lot of questions that come with changing sole proprietorship to an LLC. “How do you change sole proprietorship to an LLC?” “What are the benefits of changing sole proprietorship to LLC?” In this article I will discuss the advantages of an LLC and how to change your sole proprietorship to an LLC in order to get personal liability protection. The #1 reason to form an LLC is for personal liability protection. By forming an LLC you create a “protective wall” between your business assets and your personal assets so if your business is sued then your personal assets (like your personal bank account, home, cars, properties, investments or anything that you personally own) will be safe and secure as they will not be considered a part of the business. If you don’t form an LLC, your personal assets will be at MAJOR risk if your business get sued. You owe it to yourself to understand the differences between …

Sole Proprietorship to LLC (WHY Change to LLC?!)

Do you own a sole proprietorship? The Small Business Administration (SBA) defines it as an unincorporated business often used as a testing ground before forming a formal company. But sooner or later you will want to form a formal business, such as an LLC. There are 23 million sole proprietorships in the US, as of 2014, and many of these entrepreneurs should consider turning into an LLC. So why changing a sole proprietorship to LLC a good idea? Take advantage of limited liability Less taxes because you’re no longer taxed as a self-employed contractor More flexibility over how you’re taxed The fact is that if you want to start a US business you need to seriously consider taking advantage of the LLC structure. Send me a message at sam@mollaeilaw.com and tell me a little bit about your business. We will discuss whether the LLC structure is for you and how we can start to make that happen. Sole Proprietorship to LLC To convert a sole proprietorship to LLC you must go through a relatively simple process. The general path is …