When times get tough, the tough start new businesses. Or at least that was the case in 2020 when the Census Bureau recorded a substantial uptick in business formations. And so far, the trend hasn’t slowed. In May 2021 alone, more than 500,000 new business applications were filed across the U.S. Want to join the crowd? Here’s how to get started.
Sole Proprietor vs. LLC
The first step to business ownership (after you’ve thought up your million-dollar idea, of course) is structuring your startup. By far, the simplest and least costly option is a sole proprietorship. But simple doesn’t necessarily mean it’s the right choice for your new venture. Gaining in popularity is the single-member limited liability company or LLC. Let’s break them down to help you make an informed decision.