I thought this was a great article from NOLO - pertinent to any VA who's business is growing and changing.

Small Business Check-Up: Are You Operating Under the Right Legal Structure?
Analyze whether a sole proprietorship, partnership, LLC, or corporation is still the right fit for your business.

From the article:
Many businesses start out as sole proprietorships or partnerships because they are the simplest to form. That may have been fine when your business first opened its doors, but it pays to check in and see if your current legal structure is still a good fit for your business -- especially when it comes to tax breaks and personal liability -- or whether it's time to step up to a limited liability company (LLC) or corporation. Answer these seven questions to find out.

Click here to access the full article.

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Tess,
Thanks for the article very informative. When I started Team Outsource in Oct of 2004, I started it as a sole proprietorship. A few months after I created the business, I changed it from sole proprietorship to an LLC to reduce the risk of personal liability for debt incurred by the business. Even though the LLC is a pass through my personal taxes, I still keep separate accounts and have an EIN number for the company.
Happy New Year!

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Vivian Edisis
Team Outsource, LLC

Great article, thanks for posting it! I'll be starting off as sole proprietorship, with hopes that by next year I'll need to change that
~Mj

Very informative article. Thank you for sharing! My partner and I have been planning to switch to an LLC so this is great!

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Lauren & Melanie - VaVa Virtual Assistants www.VaVaVirtual.com

Thanks Tess for finding this article. Good information.

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Linda
Clockwise Virtual Assistance

Thank you Tess! This is great article, you can never have enough info about Legal rights and structure. I'll be saving this!

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Launch Virtual Assisting
Targeting Your Business Needs

I didn't notice this before. It will be very helpful. I've been trying to decide between a Sole Proprietorship and an LLC. My husband suggested a Sole Proprietorship for now just to test the waters. If it doesn't go anywhere, thats fine. After a year or so, I should move to an LLC for the legal protection.

Thanks, Tess. I know this is a very confusing subject for lots of folks! I love the NOLO site as it is full of excellent legal information.

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"

This is a great article to start the thinking process and to sort out the best way to file a business. I too anticipate starting a a sole proprietor.

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Christie Pate

Great article! Thank you for providing the link.