# Business title for starters



## sopka (Jun 18, 2009)

What kind of business title (business structure?) would you recommend to someone who is just starting? 

I think I am just ready to test the waters and I don't want to spend lots of money to legitimize my business with all applicable laws and regulations. What kind of business structure should I register as? I am contemplating the Sole Proprietorship option but don't know if this would put constraints in case I want to spread out my business. 

Any ideas on this? Any thoughts between Sole P., LLC and a General Partnership?


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## Chomp (Dec 19, 2009)

Sole proprietorship is the way go. You don't need to worry about limiting yourself since it can be changed later. An LLC can be handy if you have multiple people with varying levels of involvement in your business. I'd choose an LLC over a partnership, but if it's just you - sole proprietorship.


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## gearbranders (Oct 16, 2009)

One difference between sole proprietor and LLC is that your personal assets are protected in an LLC whereas your personal assets are not protected as a sole proprietor. That means if someone sues you over your shirts, they can get your home, car, and money from your personal bank accounts if you are only a sole proprietor. If you are an LLC, you have limited liability, so it's much tougher for your personal assets to be taken.

I registered as an LLC in my state, but I will still be taxed as a sole proprietor and will report business income on my personal income tax return. It only cost me $100 to register my LLC, and I did it without an attorney because I'm a single-member LLC. Just filled out the forms on the secretary of state's website. If you have multiple members of the LLC, you might consider having an attorney help you, just to make sure you have your bases covered with how the profits will be split, what happens if a member leaves the LLC, etc.

Consult your CPA and/or attorney to verify everything I'm saying is true.


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## Rodney (Nov 3, 2004)

This post should also be helpful: http://www.t-shirtforums.com/t-shirt-articles/t17054.html


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## sopka (Jun 18, 2009)

real good answers. you helped me set my mind. thank you all


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## Melanie Largos (10 mo ago)

Rodney said:


> This post should also be helpful: Starting a new business in the USA? Here are things to...


Thank you this is helpful.


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