Sole Proprietor vs LLC?

[ThinLizzie]

I was researching how to register my business name and I am a little confused as to which one i should choose.

Is your soap-making business LLC or Sole Proprietorship? Would you have liked to have chosen one over the other?

Any input would be great, thanks in advance!!

 

[nattynoo]

I love your enthusiasm!!
You might need to make some soap first.
When I first started soaping I had all the plans in the world of wanting to sell soap. An entire year later with about 150 batches under my belt. I finally think I'm ready..laugh.
Here's a terrific link written by a wise SMF'er.
http://soapmakingforum.com/forum/viewtopic.php?t=17621

 

[ThinLizzie]

nattynoo,

Thanks for the link

I realize that I can't rush into this, but I don't think that my question indicates that I'm rushing into anything. Actually, I'm just trying to be well informed when it finally comes down for me to establish my business. I see no harm in asking questions about this from soapmakers and business owners who have been doing this for a long time. Thanks for the advice and your input though.

 

[mattiesoap]

Have you checked with your state's Secretary of State's office? In my state (MO) they have a wealth of information, resources, and all necessary forms for starting/registering a business. From my research I determined the LLC would be the best for me IF I decide to take that next step. The fee for setting this up myself with the SOS's office is about $125.00 vs the $4,000.00 a friend of mine paid to do the same thing through an attorney. Good luck whichever you decide to do!

 

[LauraHoosier]

If you just need to know what each one means I found this link a while back and it helped clear it up for me: http://www.sandiegobusinesslawyerblog.com/2011/05/choosing-the-right-business-en-1.html

Keep in mind this is a CA lawyer's blog so some things are going to differ from state to state but just for the sake of comparison of the two as defined by law it might help. It did for me.

 

[Lindy]

I started out as a Sole Proprietor and I am now an incorporated company.