ANSWERS: 3
  • A LLC gives you the limited liability of a corporation along with the single taxation of a sole proprietorship. The only advantage a sole proprietorship gives you is that it is cheap and easy to form. There is no distinction made between a sole proprietorship and the sole proprietor. Thus, if your company defaults on its loans, the creditors can go after your personal assets. If the company gets sued, the aggrieved party can go after your personal assets to satisfy the judgement. An LLC gives you limited liability. If your company defaults on the loan, the creditor cannot go after your house for payment.
  • Clarification. I believe that if you run your corporation or LLC as if it were a sole proprietorship (eg. mixing personal and business finances, etc.), that personal assets may still be at risk.
  • Im not exactly sure because im not a lawyer but ive been told that a LLC protects you thats Why I got one, it makes you seperate from your business just incause your sued or something. I got mine from http://www.CaliforniaIncorporation.USfor more info check out my blog http://bizlic.blogspot.com

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