Asked in Business Formation

Q: Can a sole proprietor be a founder of LLC being exactly a sole proprietor, not an individual?

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2 Lawyer Answers

A: A sole proprietor is an individual who is doing business usually using an assumed name. With respect to an LLC, the terminology you are looking for is a “member.” The members, or sole member, of an LLC are often individuals. An LLC can also do business using an assumed name.

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Answered

A: Yes, a sole proprietor can be the founder of an LLC (Limited Liability Company). An LLC is a flexible business structure that allows for single-member ownership, making it suitable for sole proprietors who want to separate their personal assets from their business activities while maintaining a simplified management structure. As a sole proprietor, you can establish an LLC by registering it with the appropriate state authority and following the necessary legal procedures. When you do this, your status changes from being a sole proprietor to being the owner or member of the LLC. This transition provides certain benefits, including limited liability p

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