What are the actual risks of operating as a sole proprietorship vs forming an LLC?
I've been freelancing as a sole proprietor for 2 years now. My income is growing and I'm starting to worry about liability. A client threatened to sue me last month (over a disagreement, nothing serious) and it made me realize my house could be at risk. What exactly am I exposing myself to by not having an LLC? Is it really that bad?
Related Questions
Starting my first online business — should I go with sole proprietorship or single-member LLC?
I'm a freelance web developer based in Germany and I want to start selling SaaS products to US customers. I'm trying to figure out the simplest business structure. A sole proprietorship seems easiest ...
What is the difference between a general partnership and limited partnership for taxes?
My cousin and I are starting a real estate investment project and we're debating between a general partnership and a limited partnership. I know the liability is different, but how does the taxation w...
DUNS Number Application: Is my single-member LLC a sole proprietorship?
I'm applying for a DUNS number for my single-member LLC (foreign-owned) so I can enroll in the Apple Developer Program. During the application, it asks "Are you a sole proprietorship?" — should I answ...
Sole Proprietorship Explained: Taxes, Pros and Cons You Must Know
I'm choosing a business structure and want to understand: Sole Proprietorship Explained: Taxes, Pros and Cons You Must Know. What are the tax and liability implications I should consider?
C Corp vs S Corp: Key Tax Differences Every Business Owner Should Know
I'm choosing a business structure and want to understand: C Corp vs S Corp: Key Tax Differences Every Business Owner Should Know. What are the tax and liability implications I should consider?
Introduction to LLCs: What Is a Limited Liability Company? US Tax Explained
I'm choosing a business structure and want to understand: Introduction to LLCs: What Is a Limited Liability Company? US Tax Explained. What are the tax and liability implications I should consider?
C Corp vs S Corp — which one avoids double taxation and can a foreign owner use either?
I've been reading about corporations and I'm confused about the difference between C corps and S corps. Everyone says S corps avoid double taxation but I'm a foreign national (Indian citizen). Can I u...
C Corp vs S Corp Tax Basics: Corporation Taxation Explained
I'm choosing a business structure and want to understand: C Corp vs S Corp Tax Basics: Corporation Taxation Explained. What are the tax and liability implications I should consider?
Can I pay myself a salary from my single-member LLC?
I'm the only owner of my LLC. Can I pay myself a salary? How does that work with a disregarded entity for tax purposes?
Do I need to file anything with the state too, or just the IRS?
Everyone talks about Form 5472 with the IRS. But does my LLC also need to file anything with the state it was formed in? My LLC is in Delaware.
Have a similar question?
ForeignLLCTax members get expert answers with IRS citations. One CPA consultation costs $200+. Full access is $9.99/month.
Become a Member — $9.99/moDisclaimer: All content on ForeignLLCTax.com is created by a tax professional and is provided for general educational and informational purposes only. It does not constitute tax, legal, or accounting advice, and should not be relied upon as such. Every tax situation is different — for advice specific to your circumstances, please consult a licensed CPA, Enrolled Agent, or tax attorney. By using this website, purchasing a subscription, or accessing any tools or services, you acknowledge that no client-professional relationship is established between you and ForeignLLCTax.com or its operators. This website is not affiliated with the IRS.
