If I’m 26 years old and interested in starting my own pet sitting business, would it be better to register as a sole proprietorship or LLC?

What would be the best option in this case?

Asked on August 23, 2015 under Business Law, Indiana

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

As an LLC. A limited liability company, as the name states, limits, or reduces, your liability for work/business-related debts and obligations, including those arising from breach of contract or tort negligence-related injuries or damage. While the protection is not total or absoluate--you can still be sued for
debts you personally guaranty, like some loans
certain tax debts
injuries you personally cause i.e. not merely caused by your business, but by something careless you personally do
--you will still have broad protection from liability and debts arising out of the conduct of your business. That is very valuable after all, you would not want your personal bank account, car, or home to be at risk from a business-related lawsuit.
As an ancillary benefit, because having an LLC helps separate business from personal finances, it makes it easier and "cleaner" to deduct business expenses from your taxes. 


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.