LLC. vs Sole Proprietor? What the Internet Isn’t Telling You!
You’ve probably Googled this a hundred times. “Do I need a LLC?” or “Can I just be a sole proprietor and keep it pushing?” What the internet doesn’t explain is this: Your business structure is your PROTECTION. It’s the difference between building a brand and building a liability. So let’s break it down the real way.
The Sole Proprietor Trap
When you operate as a Sole Proprietor:
1) You and the business are the same legally
2) If someone sues the business, they can come for your car, savings, or even your rent money.
3) Banks see you as a “side hustle,” not a real business.
It’s faster to set up, but you’ll struggle to get funding, credit, and business grants because you’re not legally separate from your work.
Why an LLC is Game Changing?
Filing an LLC.
1) Legally separates you from your business
2) Builds business credit in your business name
3) Lets you write off legit expenses
4) Looks official to Banks, Vendors, and Clients.
It’s protection+positioning. You’re not just the brand. YOU OWN the brand.
What They Don’t Tell You?
Here’s what no one explains:
1) Filing wrong can cost you thousands later.
2) You need more than an EIN. You need a Operations Agreement, Professional Business Email, Professional Domain & Website, and a Bank Account.
3) Many online articles give you vague info, but don’t show you how to file the right way with receipts.