What legal structure does a solopreneur need?
Start as a sole proprietor. It is free, simple, and requires no paperwork. As soon as you make over $10K/year or have any liability risk, upgrade to an LLC. An LLC costs $100-$500 to form depending on your state. I formed my LLC through LegalZoom ($149 plus state fees). Took 20 minutes.
An LLC protects your personal assets. If a client sues you, they can only take business assets. Without an LLC, your personal savings and home are at risk. The Business OS covers the full legal checklist.
What contracts does every solopreneur need?
Three essential contracts: (1) Client Services Agreement — scope, payment terms, deliverable, cancellation policy. (2) Independent Contractor Agreement — for freelancers you hire. (3) Terms of Service — for your website if you sell digital products.
I use templates from Bonsai ($19/mo) which includes contract templates, proposals, and invoicing. Or get free templates from the SBA website. Pair with the Accounting guide to keep everything organized.
I am a solopreneur making [amount]/year in [industry]. Recommend the best legal structure for me. Compare sole proprietorship vs LLC vs S-Corp. Include: cost, liability protection, tax implications, and a step-by-step setup guide.
Read the related guide for more.
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