What is the difference between a sole proprietorship and LLC?

I am looking to start a small business online from home including desktop publishing (invitations, favors, etc.) for events baby. 1. What are the main differences between these 2 types of business structure? Why would anyone want more structure is recommended over the other? 2. How do you determine whether an LLC structure is needed? I heard that LLC protects your personal assets compared to a sole, but I'm not sure if I need a LLC structure based on my business.

Sole Proprietorship A sole proprietorship is the simplest business entity to form. No paperwork must be filed to an owner will generally only be when someone starts a new business conduct (unless you form another legal entity as a corporation or LLC). The business may be conducted under a false name, which is commonly called a DBA ( "doing business as"). Note: there may be a sole owner of a sole proprietorship (no more and you will need to form a partnership, corporation, or LLC). LLC (Limited Liability Company) Over the past years, LLCs have replaced the S corporations as the most popular form of business organization for new businesses. The reason? Ltd. combines the best attributes of corporations and partnerships: limited liability, pass-through taxation, and flexibility in allocating profits and losses. Also, LLCs are not subject to many of the same restrictions as companies S. The biggest disadvantage of LLCs is that their legal treatment varies by state, making them a questionable choice for businesses that operate (or plan to operate) in several states. As companies partnership, limited liability companies are formed by filing Articles of Organization with the state and governed by an agreement Operating much like a partnership agreement.

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