Sole Proprietor vs. LLC: Registering Your Gourmet Dog Bakery

[Tropicalburstqt2]

I'm just now registering my gourmet dog bakery name & I was wondering if any of you have any experience in registering a business? I'm not sure if I should register it as a sole proprietor or as an LLC? Right now it's all home-based. The cost difference is $80. Please weigh in our your advice. Thanks!

 

[kam]

I really might be wrong, but doesn't an LLC keep your personal liability down?

 

[vanscootin]

Yeah, I belive it does... I would go with the LLC too. Limited Liability Corporation which you are technically the sole proprietor of.

 

[NooraK]

What I remember from my Small Business Law class (which is getting to the "ages ago" stage), there are not only liability issues, but also tax implications. A bit of internet research might not hurt to make sure you don't sign up for something that drastically affects your tax bill. And even with the liability, I don't know how far reaching the protection is. Most banks probably won't extend credit in the businesses name at first, so you'll end up signing for any loans you need personally anyway. As for damage liability, like if a dog gets sick off a cookie or something, that's something else to research.

 

[minirottie]

You might see if you can contact your local SBA (Small Business Administration) for some guidance

 

[vanscootin]

Here is a link of the differences between the two... mainly with the LLC you are personally not responsible for damages/incidents/debts that result from the company. As in if someone sues your company and you are not an LLC, they could take personal monies or properties from you... if you are an LLC, your personal things can't be touched... at least that's what I undertood.

http://hubpages.com/hub/Sole_Proprietorship_vs_LLC-Know_the_Difference

 

[crystalscookingnow]

We just went through this with our soap making business. An LLC still doesn't fully protect your personal assets. We did a corporation to help with that protection. Since you are involving ingested products by someone's beloved family member (their pet), you may want to be more cautious than someone making clothing or hair bows.

 

[crystalscookingnow]

Here's another link to look at:Business Formation Compare Structures - Trademarks, Patents and Copyrights - LegalZoom.com