Sole proprietor versus LLC

[spotty]

What is the name of your state? Minnesota

Im planning on starting a business very similar to the 'Tupperware, Pampered Chef' home party idea, but the business would be selling romance products to women that include lotions and adult toys. There are home party businesses that sell these items but my plan is not to join their plan. I would be buying directly from a wholesaler online and have my own company name.

I have requested advice from local business advice experts and have recieved two different answers. One said LLC as a Sole proprietor and the other said Sole Proprietor (without LLC) would be better because so much easier to deal with tax time. Im still unsure which one would be better.

My investment into the business is minimal. My concearn is being sued and losing my house etc. I plan on having no employees.

My homeowners insurance guy said I can get a million dollar umbrella to cover the business. I assume this is for sole proprietor option. Do I not need insurance to become an LLC? Which form of business would have more expensive insurance

Thanks for any advice
Amy

 

[gwendat]

who insures you now?

Minnesota also

Insurance is probably the easiest thing to explore in your situation. Ask your current insurance agent for a quote, see if he/she will get you quotes from 3 other companies!! (or at least one for general idea...) you can always change that at a drop of a hat if your not satisfied...
We had similar experiences in deciding between LLC and S Corp. Our accountant that we finally chose had a definate answer to corporate structure! We had 4 (other parties)telling us LLC and 4(other parties) saying S Corp. Why did we find an accountant last? Bad move, pick an accountant 1st to direct your financial decisions! Ours responds pretty fast through email as it is tax time for her now. Good luck in your endeavors!