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?
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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 8 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.
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