LLC vs. Sole Proprietorship
~ Hello World ~
My first Solid Soaps blog post!
This is huge. I mean YUGE (for me, at least). I get to share my thoughts and ideas about soap, and you get a glimpse of my psyche!
For future reference, I plan on blogging at least once a month about soap and all things related, including running a small business, soap products and supplies, “the process,” etc. The occasional comment about life’s happenings may be mentioned from time to time, but this is mainly about the artistic medium that I’ve grown to love: SOAPING!
Let me first start by saying how thrilled I am about finally having a business website for Solid Soaps. This was a goal for 2020 - check! I have my husband, John, to thank. He’s tech savvy, whereas I am not. If I didn’t have his help, I’d likely be paying someone beaucoups of my money for this valuable resource.
So how the heck did I start this small business? It’s easy. I just PROCLAIMED that I’m a business. How did I make it legit? Well, not so easy. I found that applying for an LLC was tedious and confusing AF. But once I turned in my application, it was fairly smooth sailing from there.
I chose an LLC because the other options just did not make sense for Solid Soaps. It ultimately came down to a choice between Sole Proprietorship vs LLC. I basically wanted the protection of an LLC (limited liability). That way, the “company” is responsible for whatever happens (like getting sued or filing for bankruptcy, God forbid). I also think it’s easier to separate LLC funds and records - I have a separate bank account, I file taxes differently, etc.
I had to pay a filing fee of ~$150 (it depends on the state you’re located in) and file with my state’s secretary of state’s office. I will say, this was the confusing part - the SOS’s website succs. So confusing! Someone pay someone to make their website more user friendly, please. The form makes you spell out exactly how the business will be run and who’ll be making the decisions, which is the tedious part but ultimately a good idea to have as a foundation.
If you want an “easier” route to officially proclaming a business, file as a Sole Proprietorship. Less paperwork. Less money.
So there ya have it. My first post about starting a small business! Kinda boring and not fun, but necessary.
Next month I’ll think of something more exciting to blog about. If you have any ideas, comments, or questions, please let me know!
Thanks for reading.
Have a SOLID day.