LIABILITY:
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Many people have misconceptions that LLC somehow shields them from all types of liability. That is not true. Couple of instances are:
1. If you intentionally do something that is illegal, or fraud and that act causes losses to people/companies, you will be liable.
2. If you personally guarantee a bank loan and your LLC goes belly up, you will be liable (most banks will NOT loan your fresh LLC any money without a collateral or personal guarantee).
INCOME TAXES:
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Single person (two person if you are married) LLC acts like sole proprietorship meaning all incomes are pass-through via Schedule D. As far as I know, meal expense rules are identical (if you take someone out for a business dinner, you can only write off 50%); at least in NJ, all vehicle expenses are written off the same way on Schedule D as well. Either entities must keep a detailed record of driving miles.
NEED
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Are you planning to do any contract work for large companies? If yes, most companies will require you to have an LLC with business liability insurances.
If you are setting up some affiliate websites to make money, I would not bother. In NJ, there is a filing fee (couple of hundred dollars), and an annual maintenance fee. Although you do not have to keep a detailed meeting record like S corp, you still need to maintain corporate policies and other documents (state specific) in case you ever get audited by the IRS/Your State's Treasury department.
WANT
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Yeah, it sounds cool to say you are the President of Widgets LLC. But than again, as a sole proprietor, you can call yourself whatever you want as well (President of Widgets); The only difference will be that Widgets for Sole Proprietor will be identified as DBA or Doing Business As.
Choice is yours but if I were in the fast track MBA, I would rather focus on studying rather than taking on another administrative task.
My 2 cents..
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