| Factor | LLC | Sole Prop |
|---|---|---|
| Personal Liability Protection | Yes | No |
| Self-Employment Tax | 15.3% (can reduce with S-Corp election) | 15.3% on all profit |
| Credibility / Professionalism | Higher | Lower |
| Business Bank Account | Easier to open | May use personal |
| State Annual Fees | $0 to $800+/yr | $0 |
| Pass-Through Taxation | Yes | Yes |
| Separate Legal Entity | Yes | No |
ZenBusiness makes LLC formation simple — starts at $0 + state fees.
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