Formation
LLC vs Sole Proprietor — what really changes
Forming an LLC separates your personal assets, improves credibility with banks & platforms, and sets you up for growth as a non-U.S. founder selling in the U.S.
Why founders switch to an LLC
- Limited liability: protect personal assets from most business debts.
- Banking & payments: banks, Stripe/PayPal, Amazon/Etsy expect entity + EIN.
- Credibility: contracts and wholesale vendors prefer a registered entity.
- Tax flexibility: options as revenue grows (consult a tax pro).
What changes with an LLC
- Documents: Articles of Organization, Operating Agreement, EIN letter.
- Registered Agent (RA): required in Florida for filing & legal mail.
- Public record: RA address shields your personal address.
Typical Florida timeline
- Intake + name check
- File Articles with Florida
- Obtain EIN from IRS
- Banking readiness checklist
Common mistakes
- Using personal address instead of RA
- Mixing personal & business funds
- Delaying EIN (platforms will ask for it)
Disclaimer: This guide is general information, not legal or tax advice.
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