3 Important Reasons Why You Should Convert Your Sole Proprietorship to an LLC

For tax purposes, an LLC and a Sole Proprietorship are treated similarly. By definition, a limited liability company (LLC) is a business structure that combines the pass-through taxation of a sole proprietorship (or partnership) with the limited liability of a corporation. The income and expenses to the business are both reported on Federal Schedule C and there is no tax law code for LLCs so in the eyes of the IRS, LLCs are seen as a Sole Proprietorship.

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