Sole Proprietorship, Partnership, Incorporation or even LLC

When it comes time to register your home business, you’ll have to decide between the four.

These aren’t one-size-fits-all choices. Consider your options and business plan, then decide which type of registration best suits your needs.

The biggest concern will be the person liable for any financial obligations, insurance concerns, and taxation that the business may incur.

Owners of sole proprietorships and partnerships are personally liable for all debts of the company.

This means that if the business has financial problems or if a lawsuit is filed against it, the owner’s private assets - including home, car, and bank accounts, might be in jeopardy. On the other hand, corporations and limited liability corporations (LLC) provide complete protection for business owners, only the money invested in the business is lost, not the private property of the owners.
For most new businesses, the ideal option is the sole proprietorship or even partnership, because the structures are the simplest and the fees are least expensive.

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