LLC or Sole Proprietor – What Now?? 

So, you’ve ordered your Evolv Starter kit and you’re building your own business! Good for you! You not only possess the finest spray tan machine in the market. But also enjoy the unwavering support of the entire Evolv community, rooting for your success as an entrepreneur.

One of the most important things about running a business is protecting yourself and your finances. Being a solopreneur can be a little intimidating. In the grand scheme of things, the hard work cannot be done by anyone else but you.  Overtime, the effort invested in research, consultations with professionals, and the establishment of a robust business foundation will prove to be immensely valuable. 

First of all, we recommend speaking to an accountant, or a lawyer. We can give you a little information on operating under an LLC or as a sole proprietor.  Although the best advice comes from a professional who knows your business goals and your personal financial situation.  

Once you’ve spoken to a professional. Make sure you open a separate bank account for your business. This makes it easy come tax time. With all your expenses and income coming and going from the same place it makes it much easier to keep track of everything you’ll need. Next, you’ll want to check with your state to see what kind of business license (if any) you will need. Each state is different, and you don’t want to have to shut down shop because you don’t have your paperwork in order. 

Lots of Solopreneurs open an LLC. What is that exactly? LLC stands for Limited Liability Company. It is a corporate structure available in the United States where owners are not personally liable for the companies’ debts or liabilities. The setup cost is inexpensive (approximately $50 with Legal Zoom), and personal assets are safeguarded in case the company faces legal action.  It is still possible for the company to go into debt, but it separates your personal property and assets from that of your company. Which is not a bad idea if you’re planning on serving a wide customer base. Also, and LLC is beneficial if you want to expand to a business with employees. 

Another common option is to become a Sole Proprietor. A Sole Proprietorship represents an enterprise owned and operated by a single individual, with no distinction between the owner and the business entity. Freelancers often choose this structure. It’s a suitable option if you don’t plan to hire employees or expand beyond yourself. As a sole proprietor, you bear full responsibility for all business debts, but you also enjoy all the profits (after paying taxes, of course). However, the drawback lies in the lack of legal protection. In a lawsuit, your personal assets (like your car or home) could be seized to settle business debts.

Both of these options have plenty of pros and cons. Consult with professionals to plan your business effectively. Build a strong foundation for growth! Start a Business | Evolv Tanning