---
title: "Sole Proprietor vs Single Member LLC - What's the Difference? (USA)"
slug: "sole-proprietor-vs-single-member-llc-whats-the-difference-usa"
tags: ["USA"]
updated: 2022-07-20T12:36:55Z
published: 2022-07-20T12:36:55Z
canonical: "resourceportal.antientropy.org/sole-proprietor-vs-single-member-llc-whats-the-difference-usa"
excludeFromExternalSearch: true
---

> ## Documentation Index
> Fetch the complete documentation index at: https://resourceportal.antientropy.org/llms.txt
> Use this file to discover all available pages before exploring further.

# Sole Proprietor vs Single Member LLC - What's the Difference? (US)

### Who is this article for?

          

Independent contractors or solo business owners looking to set up a business.

In general, there are two main business types for independent contractors. The table below gives a snapshot of the differences between each.

![LLC_Solep.png](https://cdn.document360.io/9719bbba-a475-4103-9bd6-3384758a9ea2/Images/Documentation/LLC_Solep.png)

#### Sole Proprietor

- Simplest and most common business structure.
- Inexpensive to form as there is little to no upfront cost
- You, as the owner, are not a separate legal entity and therefore are not protected from business liabilities.

*For more information on sole proprietors and how to register to become one, see the [Sole Proprietor](/v1/docs/sole-proprietor-vs-single-member-llc) article.*

#### Single Member LLC

- Can be formed with only one member and obtain corporate tax status.
- Your business is separate from you; as the owner, therefore, your personal assets are protected from business liabilities.
- Can be set up as a “[disregarded entity](/v1/docs/disregarded-entity)” or as a “corporation”.

*For more information on Single Member LLCs and how to register one, see [Single Member LLC](/v1/docs/sole-proprietor-vs-single-member-llc-usa).*

## Related

- [Sole Proprietor (US)](/sole-proprietor-vs-single-member-llc.md)
- [Single-Member LLC (US)](/sole-proprietor-vs-single-member-llc-usa.md)
- [Who is an Independent Contractor? (US)](/what-is-an-independent-contractor-usa.md)
- [Pass-through Taxation](/pass-through-taxation.md)