Big difference - Property Liability Tax effects - Very similar Sole Proprietor vs LLC Big difference - Property Liability Tax effects - Very similar

Sole Proprietor (75%) No legal distinction between you and the business No requirement to register your business (license/fees remain) All your assets are exposed (Liability Insurance) Recordkeeping is a little less stringent EIN Employer ID Number, for employees (payroll taxes) DBA “Doing Business As” in SC, no requirements to register Name on Business License – Vehicle Registration

LLC - Limited Liability Corporation Single Member, Partnership, Multi Member Articles of Incorporation, file with Secretary of State Single Member "disregarded entity“ IRS treats same as SP Maintain segregation of assets

South Carolina Business One Stop SCBOS South Carolina Business One Stop https://www.scbos.sc.gov/Business/Resources

LLC - Limited Liability Corporation Single Member, Partnership, Multi Member Articles of Incorporation, file with Secretary of State Single Member "disregarded entity“ IRS treats same as SP Maintain segregation of assets

Self Employed Tax “Benefits” Education Interest on loans Home Office Health Ins SEP - Simplified Employee Pension (Solo 401K) Internet and phone usage Trade mags Meals, Travel, Entertainment 50% of your SE tax is deductible

Tax Forms Schedule SE (Form 1040), Self-Employment Tax Form 1040-ES, Estimated Tax for Individuals Schedule C (Form 1040), Profit or Loss from Business Form 1040, U.S. Individual Income Tax Return Form 4562, Depreciation and Amortization Form 8829, Expenses for Business Use of Your Home Schedule E (Form 1040), Supplemental Income and Loss Schedule D (Form 1040), Capital Gains and Losses

Tax Forms With employees Form W-2, Wage and Tax Statement Form W-3, Transmittal of Wage and Tax Statements Form 1099-MISC, Miscellaneous Income Form 941, Employer's Quarterly Federal Tax Return Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return