We often are asked this question by sole proprietors. This is a good question to ask when considering whether you should change from a sole proprietorship—also known as an independent contractor, freelancer, or self-employed person—to form a limited liability company (LLC).
Some of the differences between a sole proprietorship and an LLC are listed below.
Because everyone’s situation is unique, there are some scenarios where it may be in the business’s best interests for a business owner to remain a sole proprietor rather than becoming an LLC. However, there certainly are benefits for some to convert to an LLC. To find out what would be in your best interests for both legal and tax purposes, we encourage you to consult an Austin business entity attorney before making an entity change.
Call the Posey Law Firm toll-free at 888.269.1962 or locally at 512-646-0828 today to speak with a Texas business attorney knowledgeable in choices of entity.