What are the benefits of an LLC over a sole proprietorship?
The biggest benefit is limited liability protection. If you run your business through a properly formed and maintained LLC, you, as the owner will gain significant limited liability protection from the debts, lawsuits and judgments of your business. Other benefits include a more professional business image, a lower risk of tax audit more tax choices, and an easier vehicle for succession planning for your business. In addition, it is much easier to raise capital for an LLC because you can issue ownership interests to investors. Also, if you ever plan on selling your business, a business is more attractive to buyers when the business is in an LLC because it is easier to plan to the acquisition and transfer.
