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I'm starting up a website, and wondering how I should set up the business around it. Sole proprietorship probably sounds like the easiest, but I've heard that there are some limitations in how banks will deal with you in that case. Is there any real reason to consider doing an LLC? Also should I set up a separate business account with a bank to handle the funds from the website? |
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It really depends on what you are wanting to do with the website. LLC, as its name implies, is useful for protecting your private assets and keeping everything separate. If someone were to sue the company, under an LLC, your private assets could not be touched; however, if it were a sole proprietorship, your private assets are fair game. Secondarily, corporations are useful for generating liquidity through going public through a brokerage. As far as the accounts go, it is always smart to keep separate bank accounts. The best way to kill a business is to mix your money. |
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