LLC vs Sole proprietor vs Partnership

Indeed. An LLC is a safer bet than a sole proprietorship or even a partnership.

The manifold advantages that you can very well differentiate with are :

1.Owners are not solely responsible for all the risks:

Where an LLC can help protect you is with lawsuits against the LLC for behavior the LLC or an employee of the LLC. Say for instance someone sues you because your website isn’t ADA-compliant or because they say your product hurt them in some way, the LLC could potentially protect you personally from being wrapped up in the lawsuit. Also, for the most protection I recommend a solid business umbrella and liability insurance policy. This can actually protect your business in the event of a lawsuit either by representing you or settling on your behalf.

2. Ownership transfer is easy

In case of an LLC than a sole proprietorship as the interests can be be sold to third parties without disturbing the continued operation of the business. For a partnership or even going sole each of its assets, licenses and permits must be individually transferred. On top of that new bank accounts and tax identification numbers are also required.

3.Easier to raise money

Having many sources to raise capital , LLC can admit new members by selling membership interests; create new classes of membership interests with different profit ratios.

4. Easier Tax Options

Losses can be passed directly through to the individual shareholders, allowing them to claim the company’s losses on their personal tax returns. This is very beneficial because it avoids double taxation, allowing profits to stay within the company for possible future growth.

I suggest you form LLC on northwestregisteredagent.com, cost $39 + state fee. They have 20+ years experience in business information and provide free business address.