In order to answer the question posed in the title of this post, it's important to understand the distinction between a sole proprietorship and a limited liability company ("LLC"). The most important distinction is that a sole proprietorship is not actually a corporate entity separate from the owner, like a corporation or LLC. When someone chooses to operate their business as a sole proprietorship, they are simply running their affairs under their personal name and accept unlimited liability (i.e., your personal assets are at risk) as they carry out the nature of their work. Of course, this has inherent risks, but it is by far the cheapest option available for anyone looking to start a business.
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