Forums: Discussions for entrepreneurs and small business.

Should a sole proprietor also become an LLC?  I am a startup and what are the benefits?

If you have any credit or outstanding liabilities under your current EIN, I would apply for a new EIN.

I also recommend going the LLC route.  DBAs don’t give you any protection and retail = public and public = potential lawsuits even if you do nothing wrong.  In most states allow you to do without all that much paperwork.  In NY, for example, you can do all this on-line and this is something you can do yourself if you will be the only owner, know as a “single member”.  Although, in NY I do recommend hiring someone to help fulfill the publication requirement just to save you time and leg-work.

If there is more than one owner – known a as ‘multi-member’ LLC, then a lawyer would be useful in least to have the operating agreement created but the LLC is still something you can do yourself.