It depends on your State, I live in OK and it only cost $100 to register my LLC with a $25/year renewal fee. For me, the cost was not a factor. However, I know it Texas it costs upwards of $750 to register, in that case I probably would have considered staying a sole-p.

It also depends on the services you offer. I provide bookkeeping and handle a lot of confidential information, so for me the liability protection from being an LLC is a must.

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Rebecka Melson ~ Virtual Business Services