Incorporating Your Business: Sole Proprietorship, LLC, or Corporation

When I started blogging, my “business” was a sole proprietorship. As I began to earn a little more income, I decided to move from a sole proprietorship to a limited liability corporation, an LLC, to reduce my personal liability. As the years passed and business grew, I ultimately converted to a S Corporation for tax purposes. At each step of the way, I analyzed whether going from one business entity to another made sense from a financial and a legal standpoint. You have to weigh all these factors before you decide whether filing the paperwork is worth it.

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