Re: Do you need to form an LLC or sole proprietership?
Please don't let this comment scare you off from being a sole proprietor.
Typically the only difference between an LLC and Sole Proprietor is the fact that if someone were to sue you then they can come after your personal assets. If that's different in different areas of the country, then please ignore me on this one.
You are taxed the same "i.e. your personal and business taxes, expenses, income, etc. are all filed with your personal taxes - and you just use Schedule C for the tax part of it."
It's really up to each individual business owner on whether they feel it is a risk or not. Also, I could be wrong but I'm sure I saw somewhere on this site - probably under the Legalese forum - that there are states that you can file as a LLC in their state, and it is MUCH cheaper than filing in your own. It might be worth at least checking out that option. In Colorado it was only $50.00 to file as an LLC...so that was well worth it to me.
Pam
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