Hey everyone - I’ve been operating an e-commerce business from home for the past 2 years as a sole proprietorship. I recently switched to full-time on the business earlier this year, and am in the process of hiring my first employee.
I know I’m able to hire an employee as a sole proprietorship in my state, but now that I’m full time and the business is growing, I’m considering changing the structure to an LLC.
Moving some liability away from my personal assets sounds great, as well as creating more clear lines between business/personal expenses.
Are there any advantages/disadvantages from making the switch that I’m missing? I’ve been able to write off a lot of expenses the past 2 years since I’ve been operating out of my home.
Also, will it make taxes more complicated to change part-way through the year?
Thanks!
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