Under LLC ownership, independent contractors are not personally responsible for most debts their businesses may incur.
Chicago, IL (PRWEB) April 18, 2013
The independent contractor travel staff of Executive Travel Directors (ETD) commonly file as sole proprietors, requiring less paperwork and minimal fees. Yet, there is a trend among ETD staff demonstrating a switching from sole proprietorship to LLC ownership. With the help of Legalzoom.com and Travel Director staff, ETD has put together some reasons independent contractors might go with an LLC or remain a sole proprietor.
Under LLC ownership, independent contractors are not personally responsible for most debts their businesses may incur. This means that their personal assets are protected from within the LLC from creditors. Sole proprietors, however, may potentially be sued for personal assets if debt is not paid in full.
Sole proprietorship is appealing to those who are tight on funds. Sole proprietorships can be established and run with minimal costs. Meanwhile, LLCs must pay start-up, filing, and state fees. Additionally, sole proprietors do not have to be as mindful in separating work and personal expenses, while an LLC must keep separate financial records.
Be sure to speak with a tax adviser before filing for an independent business. Such professionals can be of assistance in exploring all business establishment options and applying them to a business’ individual needs.
Executive Travel Directors (ETD) is a Chicago-based company providing onsite logistical assistance to business meetings, incentive trips, and medical educational sessions. Since 1988, ETD has operated on respect for meeting planners and the success of their programs. ETD hosts a registry of over 2,000 travel directors and provides staff to more than 5,000 programs annually. For more information on Executive Travel Directors, please visit us at http://www.traveldirectors.com.