Post a new topic
    2 Replies Latest reply on Apr 2, 2009 4:49 PM by Molokay

    Should I switch from Solepropiertoship to LLC?

    Molokay Newbie
      I have an online business and I'm currently working on my business plan to find Angel Investors. So far the business is working under a sole propiertorship but I'm not sure if being a SP is appealing to an investor. So, my question is:

      • Does an Angel Investor cares about if the business is a solepropiertoship or an LLC, or for that matter any other form of business?
      • What are the main difference between SP and LLC?

      Thanks in advanced for your input.
        • Re: Should I switch from Solepropiertoship to LLC?
          amspcs Ranger

          This is not a question to be answered on a public forum. You need to utilize the services
          of professionals (CPA and/or attorney). This is because there is no one-size-fits-all
          answer. The correct answer for YOU depends on YOUR particular circumstances, needs,
          and realities. A professional knows what to ask and look for, based on which he/she can
          provide you with the correct answer for you.

          I know attorneys and accountants cost money, and that might be why you are avoiding them. Very understandable and legitimate. Have you considered a service such as Pre-Paid Legal services? For a nominal and reasonable sum, you have the expertise of professionals at your fingertips.
          We make good use of such a service, well worth considering.


            • Re: Should I switch from Solepropiertoship to LLC?
              Molokay Newbie
              Hello amspcs:

              I usually try to get basic information before making the decision to seek professional help. That gives me an overview and necesary additional info to research more about it. Although I know finding this information on the internet is very easy, it has always helped me to hear opinion from people who have experienced it, hence the reason of my posting.

              I agree that one size does not fit all.

              I'm more interested in knowing if Angel Investors cares about a business being a solepropiertorship or a LLC when investing and the legal reasons why.

              Thanks for your anwser, I will certainly consider the use professional help after learning more about SP and LLC.

              All best.