Deciding between an LLC and a sole proprietorship? Learn how each business structure affects your taxes, liability, and flexibility. Explore key differences to choose the best option for your needs.
While sole proprietorships are simple to set up, mixing personal and business finances is discouraged. Keeping funds separate protects personal assets, simplifies tax reporting, and maintains professionalism.
The cheapest form of business ownership is a sole proprietorship. It requires minimal startup costs, little to no formal registration, and allows you to report business income on your personal tax return. However, it offers no liability protection and limited options for raising capital.
