[Comin'OutSwingin]

I think the main benefits an LLC or INC is the protection of your personal assets.

With a sold proprietorship your assets have no protection against claims brought against your company (you!).

The main benefits to a sole proprietorship is taxes. With an LLC and Corp., you basically get the "double taxation"!

Sales and profits of the business are taxed, AND when you pay yourself from the business that income is taxed again.

With a sole proprietorship you avoid this.

Depending upon your state, it can also be quite expensive to form an LLC or Corp.

Those are the main ones. I don't know of any articles off the top of my head, but I'll keep a look out.

 

[Comin'OutSwingin]

The expense of incorporating depends on your state.

Here in TN the actual filing fee is $100.

For an LLC in TN the MINIMUM filing fee is $600.

Of course there is a little more reporting, but it's not bad.

The overall tax implications may be more to incorporate over an LLC, but not the initial out of pocket.