Don’t Be a “Default” Sole Proprietor: The Business Structure Basics for Solopreneurs

By: A Staff Writer

Updated on: Jul 25, 2024

If you don’t actively choose a structure, you’ll end up with one that could be costly. Let’s explore your options.

• Sole Proprietor: Simplest to set up, but NO personal liability protection.
• LLC (Limited Liability Company): Protects your personal assets, fairly easy admin.
• S-Corp: Potential tax advantages (but more complex), for profitable businesses.
• Consult a Pro: Laws vary by state, an accountant/lawyer can personalize this.
• Liability Check: How risky is your business? Service vs. making products matters.
• Growth Mindset: Your structure can evolve as your business expands.

Choosing the right structure is about protecting your future self.

A little upfront effort can save MAJOR headaches (and money) down the road.

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