💡Here’s a quick breakdown: Sole Proprietorship - Easiest to start, no formal registration needed - You and your business are the same legal entity - Taxes: you report income on Schedule C of your personal tax return - You pay income tax full self employment tax (Social Security & Medicare) LLC (Limited Liability Company) - Offers legal protection for your personal assets - Default tax status: taxed the same as a sole prop or partnership - You can elect to be taxed as an S-Corp for potential tax