Legal Question in Business Law in Nevada
Forming a sole proprietorship or LLC
When starting a part-time, one-person, small home business is it best to form a sole proprietorship or an LLC when you want to limit your liability but don't expect to be making a very big profit?
3 Answers from Attorneys
Re: Forming a sole proprietorship or LLC
It is better to be an LLC or an S corporation. You not only get a shield to personal liability but you can get deductions and corporate perks. James E. Smith
Re: Forming a sole proprietorship or LLC
Because you have no employees, if you were to commit any torts, the most likely scenario is that both you as the tortfeasor, as well as your LLC, by virtue of its vicarious liability, would be jointly and severally liable. For contract purposes, however, you might be able to limit the liability to the LLC only, assuming someone is willing to contract with you without a personal guarantee.
Re: Forming a sole proprietorship or LLC
A S Corporation or LLC may shield some liability but not for your personal actions. It may be less expensive if you were not to form any entity but simply to have proper insurance. You should consult with an attorney regarding the details of your business and the plusses and negatives.
Joel Selik
702-243-1790
www.SelikLaw.com
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