As a sole proprietor, you and your business are one legal entity. Every debt, lawsuit, and liability directly threatens your assets. Creating an LLC is a crucial shield between your business obligations and assets because your home, savings, and future remain protected when your business faces challenges.
Transform this vulnerability into an LLC with our unique conversion package, creating a crucial barrier between business liabilities and personal wealth. Key benefits include:
Expert Conversion Guidance
Partner with our seasoned incorporation specialist, who will guide you through every step of the entity conversion process, ensuring a seamless transition from vulnerable sole proprietorship to protected LLC status.
Find answers to our most commonly asked questions about business formation and asset protection here. If you have additional questions, schedule your free 15-minute consultation with our experts.
You should do so because the LLC offers you liability protection, while the Sole Proprietorship does not. When you operate as a Sole Proprietorship and a claimant sues your business, that claimant can reach all of your personal assets. When you operate as an LLC, that claimant can only reach the assets held inside of your LLC, and not your personal assets.
There are a few steps that you'll need to take to convert your entity. First, you'll need to create your LLC by filing the Articles of Organization with the Secretary of State. You'll then need to get an EIN number from the IRS, which you will use to open a separate business bank account for your LLC.
If you're looking to move your entity to a new state, you'll have to follow a process. You'll need to register your new entity with the secretary of state in the state you're moving to. You'll also need to make sure that your entity is in good standing with the secretary of state in the state that you're moving from.
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