Should I start a sole proprietorship, and why?
I do freelance graphic design and I was wondering if starting my own business is the way to go? What are the advantages in general, and tax wise? Right now I have one major client that I do 30+ hours a week for, and another smaller client that I only do work for occasionally. Will I make more money if I have my own business?
Is starting a corporation a viable option, or is my income and client base too small to make it worth it?
I have read about the differences between a corporation and a sole proprietorship, I just don't know which would be best for me.
Any help is appreciated. Thanks.
- Anonymous1 decade agoFavorite Answer
The primary difference between incorporating your business (LLC or Corporation) and remaining a sole proprietor ship is the protection of your personal assets from business liabilities. A LLC can be taxed the same as either a sole proprietorship or a corporation, at your option at setup.
Your income and customer base is never to small to incorporate.