For the majority of small business owners and entrepreneurs, the legal components of establishing a new business can feel extremely daunting. One of initial steps you will encounter when establishing your business, and contemplate in the years to come, is whether to establish your business entity as an independent contractor, LLC or sole proprietorship. This can appear to be a complicated process, but Nevada Small Business Consulting is available to walk you through the process and ensure you have all the required paperwork in place.
LLC S-Corp vs Sole Proprietor or Independent Contractor, What’s the Difference?
A sole proprietorship can be a business of any type that is operated by an individual person. If you have a business that is not registered with your state, and you are generating income and expense’s that are unrelated from your common household expenses, then you are considered a sole proprietorship. An independent contractor is person who is works for a company or individual, however does not work as an employee. The primary contrast between an independent contractor and a sole proprietor is that an independent contractor typical provides a service compared to selling a product.
A limited liability company (LLC) is a business structure that offers protection for its owners from personal responsibility for its debts or liabilities. Limited liability companies combine the attributes of a corporation with those of a partnership or sole proprietorship. While the limited liability characteristics are often indistinguishable to that of a corporation, the accessibility of flow-through taxation to the elements of an LLC is an attribute of a partnership rather than an LLC.
Nevada Small Business Consulting has assisted many business owners throughout the country to set up and launch their business, hassle and mistake free. We would be honored to do the same for you! You can click the following link to view our 5-star Google Reviews. You can contact us today at (702) 587-5652 to schedule a no-cost consultation.