Both entity types (and others) will work. There are benefits and drawbacks to each:
Sole Proprietorship --------------------- Positives ->easy to set up (in the eyes of the government, "you" are "the business"). ->very little paperwork to do; taxed only once on personal income taxes
Negatives ->unlimited liability. Since "you" are "the business", your personal assets back the business. So, if you are sued for something, they can go after your personal assets. ->cannot have partners
LLC ----- Positives ->creates a barrier between the company and the person; in the eyes of the government, the company is treated as a person. So the company can be sued, but your personal assets are protected. ->like a sole proprietorship, it is taxed only once; taxes are paid on your personal income taxes ->you can have partners; each partner (or owner) is called a "member"
Negatives ->requires a little more setup, including registration fees. ->laws vary by state
At the end of the day, it really is your tolerance for risk balanced against which services and how much of them you anticipate providing that will help you to decide which entity to go with.
Bastion is an LLC established in the state of Florida.
do a lot of people on here have their business setup up as a sole proprietorship or is most going to an llc or corporation? since i will be doing this part time i'm thinking i may start out as sp and the possibly switching to an llc in the future.
