Starting a sole proprietorship is a low-effort endeavor. In most states, you won’t have to register any paperwork unless you’re operating under a fictitious name or “doing business as” (DBA).

This guide explains how an LLC vs. sole proprietorship differs in terms of formation, operations, management, taxes and legal protection. Many, or all, of the products featured on this page are ...

Sole proprietorships can only have a single owner, while LLCs can have one owner or multiple owners, known as members. LLCs can be established as single-member LLCs, partnerships, ...

Sole proprietorships also generally don't require an Employer Identification Number (EIN) so you'll just use your Social Security Number where required. LLCs require registration.