What Is A Sole Proprietorship?
You're out there, marketing your company, finding customers, getting paid, and the most official thing you've done so far is print business cards. You are a sole proprietor. In fact, most businesses start out as sole proprietorships, but as your business grows, you should consider forming a separate legal entity in an effort to protect yourself, your business and your personal assets.
The most important reason for doing so is often referred to as the “corporate shield.” A sole proprietor is considered “one with the business” can be held personally liable for anything associated with the business. This means that anyone suing your company, or you as the owner of the company, can come after your personal assets like your house, your car and your personal bank accounts. In contrast, shareholders, partners, and members of Limited Liability Companies are generally not personally liable for the obligations of the business. When you form a legal entity, the business then becomes a separate “person" and/or "entity". Therefore, a legal entity provides a shield that protects your personal assets from legal judgments against your company.
Protect yourself and your business! Contact us today and set up a complimentary consultation!