LLC vs Sole Prop?

Heya Peeps,

Is there any advantage of forming an LLC?

In the past I've run contracts through a Sole Proprietorship, aka fictitious business name.

What are the key advantages of incorporating as some form of LLC?

Thanks, Keith

 

you benefit only if you are an Active Trader. very little else.

 

I mean more from the perspective of writing code for clients, like algos or support programs.

 

The corporate veil. You cannot be held personally liable for anything your business does. And a little more tax manipulation.

Like for example, you have a business, you dont personally make money so you could also get on government assistance. Manipulation like that - but in a legal way.

 

If I were you I would consult an attorney and not trust anything said in such a forum. I have a close friend who has been a software developer for his entire life and he carries insurance when he develops software for others under an LLC. I don't believe it's totally correct or true to say "you cannot be held personally liable for anything your business does". A judge in court will make that determination, not just because you have a piece of paper saying your an LLC.

 

Then you are an idiot and dont understand the corporate veil. shut up.

This is basic business principle. Its clear you dont know jack shit. While its possible to pierce the corporate veil it rarely happens. You would have to do something ridiculous for a judge to try and pierce the veil.

Instituting a bug into a code you are writing for the US govt, to siphon off secrets and sell? Ya, thats pretty egregious - these are the only exceptions.

 

That's correct and is why I consult attorney's and have CPA's handle my taxes.

 

If you are not tied down, you may want to consider which state you do your LLC. CA vs NV can make a world of difference...

 

Not everyone is such an idiot that they have to pay a lawyer to tell them what they already know or can learn for free.