Sole Propietor or LLC?

When things get really busy and you're running around everywhere making lots of money, then you'll deal with the state bureaucracy and fill out stupid forms to get your LLC going...

Or, when you have time like now because business is slow you will set up your LLC....

Difference between Sole Proprietorship and LLC

A sole proprietor owns an unincorporated business that is not registered with the state unlike a corporation. There is very little government regulation since it is not a separate legal entity. The proprietor is entirely responsible for the debts and the assets of the company and reports business income as personal income. Although, unlimited liability is a distinct disadvantage, a sole proprietorship is not taxed at the entity level for the simple reason that it is not considered a separate legal entity!

A limited liability company (LLC) enables entrepreneurs to combine the limited liability feature of a corporation with the single taxation feature of a sole proprietorship. Unlike a sole proprietorship, that is established by an individual, a limited liability company can be formed by one or more members. The members may be individuals, corporations, other LLCs or foreign entities. The interest or the share of the members in the company is expressed in percentage.

An LLC will protect your personal assets. Are you in a business with high or even moderate risk of customer injury or harm from what you do? If not, Sole prop is fine. You will probably want to elect to get a federal ID number so you don't have to continually give out your SSN.