Sole vs. LLC and Other Business Jargon

When creating a business, one of the first things that has to happen is to decide what type of business it will be. And by that I don't mean what you are going to do, I mean how you are going to file. You were planning on filing that money with the government, right?

For event planners there are a few options that steal the show:

• The Sole Proprietorship: The sole proprietorship is for businesses owned by one person. It is the simplest and most prevalent type of business. It is also the easiest to set up - all assets and aspects of the company are owned by and the responsibility of one person. The downside? That one person bears the responsibility of any debts or liabilities of the company as well.

• The Limited Liability Company (LLC): The LLC is an increasingly popular form of company. This company type combines the best worlds of a corporation and partnership through personal protection and tax benefits. Members are not held responsible for company debts. But the disadvantage is that they do tend to cost more to set up than the other types.

• The S-Corp: The S-Corp has liability protection and single taxation - meaning the corporation's income or losses are passed through to the shareholders. It is, however, easier to set up than an LLC. The only difference here really is in record keeping procedures - essentially, it has a little more to do with formalities but might cost you a little more in filing.

Does that make sense? Did I miss anything? Ultimately, it's kind of a hard choice but it really depends on you and what you are looking for in your business. Obviously, business types vary greatly and, thus, so do the types of ways you can form them. The same thing won't be right for everyone. Your thoughts?