Q: I have a sole proprietorship business but would be safer to have an LLC for liability reasons?
I have a sole proprietorship plumbing business but have been told by other business owners lately that I should have gone with an LLC. I am fully insured, bonded, and licensed but I want to make sure that will protect my personal assets if something does happen one day. I have been researching how to switch but I’m seeing I would have to dissolve the company, close accounts, and more in order to do this and I’m wondering if that is the way to go. Thank you.
A: An LLC can certainly provide an additional level of protection for your personal assets, when properly set up and properly run. But, as you pointed out, you would likely need to open a new bank account and set up your license, insurance, bond, etc to reflect the LLC. Some of those things you might be able to update to reflect the change to an LLC, and some you will need to start new.
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