The difference between a Single-member LLC and Sole Proprietorship.

It can be hard to decide between setting up your business as a sole proprietorship or a single-member LLC. In this video, we break down the big differences between the two and give our recommendation.

Sole proprietorships are easy to set up but they have substantial downsides. You won’t have an EIN like you would with a single-member LLC and that means you’ll have to use your Social Security number on any 1099-NEC or 1099-Misc forms you receive. Instead, we recommend that you use a single-member LLC as your entity structure to preserve your privacy, gain access to business banking, and for the flexibility of restructuring your LLC when it’s time for your business to grow.

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Sole Proprietorship. Single-member LLC. Single Member LLC. Proprietorship. Sole Proprietorship Vs LLC. Small Business Tips. Starting a Business. 1099-NEC. 1099. 1099-Misc. LLC Benefits.
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DISCLAIMER:
Tax Tips discussed here were prepared for the purpose of this video. To apply these strategies, please consult with your CPA or professional tax preparer.

[courtneygiles]

I’m confused. You can get and EIN for a Sole Propiertorship.

[ESpirit]

Hello, thanks for the insight on so proprietor versus single member LLC. What’s the cost I’m single member LLC and how do you set it up

[hrbaker]

Is there a recommended income threshold at which it's appropriate to change from sole proprietorship to single-member llc?