Should I Form an LLC or Do Business as a Sole Proprietor?

Video Transcript: Should you form an LLC to do business or do business as a sole proprietor under a different name, commonly known as a DBA? And the answer to that varies on a lot of circumstances that can only be evaluated after a detailed review of your circumstances. Some of the key indicators that will determine an answer are the type of business that you're going to do and whether you have any professional licenses. For example, a professional person with a professional license cannot avoid liability for their conduct by doing business under an LLC. Other types of businesses can. Other things to consider are what sort of assets you want protected. Of course, the cost of forming and maintaining an entity is also a consideration, and another consideration is the nature of the work you're going to be doing, what sort of liability might arise from that, and whether or not insurance could cover those sorts of liabilities. You also want to consider how much you want to protect personal assets from possible liability as opposed to having liability sequestered under an entity like an LLC. If you have any questions on whether you should use an LLC or a sole proprietorship or any other sort of entity, feel free to contact me, Ray Areshenko, at REA Law. Phone number is 775-300-7594 or visit the website www.rea-law.com.