What is the difference between sole proprietorship and llc?

The following section outlines the advantages and disadvantages of an LLC in comparison to a sole proprietorship and partnership. Advantages of an LLC Compared to a Sole Proprietorship and a Partnership. Owners are Not Personally Responsible for Company Debts. This is the most important attribute of an LLC. read more

Perhaps the biggest difference between a sole proprietorship and an LLC is the issue of limited liability protection. Sole proprietors have unlimited liability for business debts, lawsuits and other business-related obligations. read more

This is the most important attribute of an LLC. In a sole proprietorship and partnership, the owners are personally responsible for business debts. If the assets of the sole proprietorship or partnership cannot satisfy the debt, creditors can go after each owner's personal bank account, house, etc., to make up the difference. read more

The difference between a sole proprietorship and an LLC is an important distinction for business owners to understand. read more