See if you're eligible for a loan, it only takes 30 seconds...
1. Your Business (10 seconds)
2. Monthly Sales (10 seconds)
3. About You (10 seconds)
Please Choose Type of BusinessBed & BreakfastBusiness ServicesConstructionEntertainmentEnvironmentalFranchiseHair & Beauty SalonHome ImprovementHotel/HospitalityLegalManufacturerMedicalMOT/Independent GarageNail SalonOff-Licence BusinessPersonal ServicesReal EstateRestaurant or PubRetailSpaTransportationVeterinaryWholesalerOther
When starting a small business, one of the most important steps is deciding which business structure fits your idea the best. Although the process and amount of circulating information may be overwhelming, the legal entity of your business is crucial to your success. Two of the most common forms available for startups and small businesses are the LLC and Sole Proprietorship.
The Limited Liability Company (LLC) is one of the most popular business structures. It combines elements of a corporation and partnership, while eliminating some of the negative features of each. Like a corporation, the LLC provides limited liability to its owners and shareholders; like a partnership, the LLC offers a pass-through income taxation.
A sole proprietorship is a business structure that is owned by one individual, the sole proprietor, where there is no legal difference between the owner and the business. This structure is designed for individuals in business for themselves without associates, partners or strict state and federal regulations.
A sole proprietorship can eventually be converted to a LLC, but conversion costs may be substantial. It is important to understand the difference between all business entities and decide which structure best fits your personal requirements as well as the needs of your business. It’s best to consult a lawyer for help with this process, but with thorough research, it’s possible to make the decision on your own.
Learn how we help our customers around the country grow their small businesses—and thrive.