Is sole prop ok for a small bookkeeping business in my home or should it be an llc?

I’d be using Quik books for contractors or anyone self employed. I would be getting them organized and ready to go to their CPA at tax time.

Asked on May 25, 2016 under Business Law, South Carolina


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Definitely form an LLC: it will provide a great deal of protection for your personal assets from business debts or obligations (not perfect protection--there are ways around it, and circumstances under which it does not apply--but still, protection from most common debts and obligations). If you elect to form it with "pass through" or "partnership" tax treatment, there will no negative tax effect (the profits or losses drop directly to your personal bottom line and are taxed with your other income; there is no "double taxation").

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