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Originally Posted by kprocivic
Lending and taxes, I'm not sure what else your referring to. For most people sole prop does exactly what people need it to do. Keep income seperate.
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Quote:
Originally Posted by Maestro
Also, if you are running a business you do not want your home owners insurance covering any part of your business, especially if the business is set up as a LLC. You want to keep everything separate as best you can.
You want you personal stuff separated from your business stuff as much as possible because if someone is coming after you they want it all and any links between person and business assets becomes fair game.
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This. If anyone sues your business or comes after you in any way with a sole proprietorship, they can come after you for everything you're worth. With an LLC, worst case your company goes bankrupt, but you've still got everything you have. Tax rates are typically more favorable as well.