When should one consider switching to an LLC?

Mike Savage New Canaan20 Aug, 2026Finance

It is usually the easiest way to test out a business idea to start as a sole proprietor since there are fewer formal requirements, less paperwork, and a simple method of reporting business income. However, when a business begins to grow the simplicity of this arrangement can become less convenient. Knowing when to move to an LLC can help the owner to protect their personal assets, cope with increasing responsibilities, and look into various tax options.