If you're starting a business by yourself, the two simplest options are usually a sole proprietorship or an LLC. Here's how to think about the difference.
In This Guide
A sole proprietorship is the default — if you start doing business on your own, you're already a sole proprietor. No paperwork required. An LLC is a formal business structure you set up with the state, and it creates a legal separation between you and your business.
It depends on your business. If you're doing low-risk, small-scale work, a sole proprietorship might be just fine for now. If you're signing contracts, working with clients face-to-face, or want to look more professional, an LLC might be the better move.
At Reed Launch Solutions, we help small business owners weigh options like this and get set up the right way. We can help you think through what makes sense for your situation — and if you need specialized legal or tax advice, we'll let you know.
This is general educational guidance, not legal or tax advice. The best choice depends on your specific business and situation.
Keep exploring the guides, head back home, or reach out if you'd like a hand with your launch.