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LLC vs. Sole Proprietor: What’s Best for NYC Small Businesses?

  • mrsniccolgordon
  • Nov 30, 2025
  • 2 min read

Queens LLC Formation • NYC Business Registration • Small Business Tax Support • Business Formation • EIN • Black Owned Business • Women Owned Business

If you’re starting a business in New York, or turning your side hustle into real income, choosing the right business structure is one of the most important decisions you’ll make.


Here’s a simple breakdown to help you choose between a Sole Proprietorship and a Limited Liability Company (LLC).


Sole Proprietorship


Easiest to start • Lowest cost


  • Your business is YOU, no separate legal entity

  • All income is reported on your personal tax return

  • Ideal for freelancers, consultants, new entrepreneurs


Important: You have no legal protection. If something goes wrong, your personal assets can be at risk.


LLC (Limited Liability Company)


Most popular small business structure in NYC


  • Creates legal separation between you + your business

  • More flexibility with taxes (you can choose how you’re taxed)

  • Helps build business credit + credibility

  • Required for many licenses + contracts


Best for entrepreneurs serious about growth + protection.



So Which Should You Choose?

If you want…

Choose:

Simple + no upfront cost

Sole Proprietor

Personal asset protection

LLC

To build business credit

LLC

To hire employees later

LLC

More tax strategy options

LLC

Most NYC entrepreneurs start as a sole proprietor, then upgrade to an LLC once income + risks increase.


But many business owners benefit from starting with an LLC from day one, especially in industries like real estate, transportation, childcare, beauty services, and consulting.



We Can Set It Up For You


At Express Tax Professionals, we handle:


LLC Formation (NY & Multi-State)

EIN + Operating Agreement

Sales Tax + Business Licensing

Annual Filings + Ongoing Compliance


We make the process fast, stress-free, and done the right way.


Written By: Dr. Niccol Gordon



Queens LLC Formation • NYC Business Registration • Small Business Tax Support • Business Formation • EIN • Black Owned Business • Women Owned Business


Queens LLC Formation • NYC Business Registration • Small Business Tax Support • Business Formation • EIN • Black Owned Business • Women Owned Business

 
 
 

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