LLC or Sole-Proprietorship

**BeemerBMW** · 01-12-2007 05:41 AM

I am opening an online retail store and want to know whether I should choose an LLC or sole-proprietorship as the entity?

I will be the only owner of the company.

It is a small business and probably won't have any employees (maybe a few). (at least the first couple of years)

I will be selling aftermarket Mustang parts (to begin with), then moving onto selling OEM and aftermarket automotive parts, and then moving onto selling OEM and aftermarket parts for various types of vehicles (motorcycles, automotive, etc.).

I'm thinking that it would be best to go with an LLC, due to the risk factor of selling vehicle parts that could possibly cause something to go wrong. (and me be held partially liable)

I'm just wondering how they compare with each other and what might be best for me.

**kozuch82** · 01-14-2007 02:55 PM

It's about money because LLC needs some start capital. Sole proprietorship does not.

**SSM** · 01-14-2007 05:03 PM

It cost me $50 to start my LLC and it protects all of my personal assets.

**journeyoftheanimala** · 01-14-2007 08:36 PM

My 2 cents. I have done a bit of research on this because I will be starting my online pet supply store. I have decided to go with LLC because of the fact that it protects me best from what I have found. Also nobody you deal with is going to care what you are. I will be filing for my business license as a LLC, I will also be filing for a DBA (doing business as) so I may be able to open a bank account under my company name and last but not least I will be acquiring my state and federal tax ID numbers.

**SSM** · 01-15-2007 03:30 AM

You dont need a DBA if you 'do business as' what your LLC name is. Just register your bank acct and tax ID under the LLC name and you are fine. DBA's are more for companies that have a lot of subsidiaries. Broad example...lets say Coca Cola was an LLC, they'd want a DBA for all of their lines of product like Diet Coke, Coke Zero, Cherry Coke, etc.