Legal · Guide
A plain-language comparison of sole proprietorship, LLC, and corporation — and how to think about which fits your situation.
The right entity depends on liability exposure, tax treatment, and how you plan to grow. A sole proprietorship is the simplest to start but offers no separation between your personal and business assets. An LLC adds liability protection with relatively simple upkeep, which is why most new small businesses choose it. A corporation makes sense if you plan to raise outside investment or issue stock. This is general information, not legal advice — confirm your choice with a licensed attorney or CPA before filing.
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