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Sole Prop vs LLC in WA

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I am starting a consumer advocacy business and have been studying the benefits of registering sole prop with liabilty insurance vs. LLC.
If I am going to be the owner and sole employee then if sued wouldn't I be liable (since it would have been my actions that brought on the suit) as an individual as well as the owner of the business?
If this is the case, then the protection of the corp veil offered by registering as an LLC loses it's appeal.
Any advice would be appreciated.


Senior Member
The difference between a proprietorship and a corporation (or LLC) is not that you can or can't get sued. You (or the corporation) can get sued just as normal practice.

The difference is in the liability. If you are a proprietorship, you personally can be held liable for the proprietorships debt, negligence, contracts, etc. This means that EVERYTHING you own is on the line.

However, if you are running your business as a corporation, then only the corporate assets are liable. Creditors cannot go after you personally, for the debts or liabilities of the corporate acts. However, be aware that a lot of financing will require a personal guarantee for payment in the event that the corporation does not have significant assets.

Steve Halket
Judgment Recovery of Houston
[email protected]
This is my PERSONAL OPINION and is not legal advice! Consult your local attorney for your specific situation and laws!

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