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I want to point out one thing, because I see this often being misconstrued. It is not a definite protection against personal liability. It depends on the number of partners and what exactly is being sponsored by the company. (assets being sponsored)

Dear CLU025

In my opinion the greatest benefit of an LLC is that it creates a shield of liability protection between the LLC's business and the owners of the LLC. This is important because if your business experiences a loss or a claimand gets sued, then you,as the owner is not personally held responsible. You need to check with your State Corporation Commission and they will gladly provide you with the ins and outs of obtaining and maintaining your LLC. LLC's are required to operate there company under guidelines as stipulated by your particular State.

In operating a business I believe most lawyers and accountants would recommend the LLC route. The cost for filing is not prohibitative. Further, as a sole proprietorship you are totally at risk as your business is inherently a part of you personally.

For additional information go to google and type in www.your state(ie Maryland)BusinessFormation.com for more detailed information.

Hope this is of some help!

John