LLC vs Sole Proprietor in Colorado
A plain-language look at how the two structures differ, so you can make the decision with confidence and the right professional advice.
| Category | Sole Proprietor + DBA | LLC |
|---|---|---|
| What it is | You do business as yourself under a registered trade name | A registered legal entity that exists separately from you |
| Startup cost with us | DBA + EIN Package: $300 | Full Business Package: $350 |
| Personal liability | You are personally responsible for business debts and obligations | Designed to separate business liabilities from your personal assets |
| Taxes | Business income is reported on your personal tax return | Depends on elections; many single-member LLCs also report on personal returns |
| Ongoing state filings | Trade name renewal each year | Periodic report each year, plus trade name renewal if you use a DBA |
| Commonly chosen by | Freelancers and solo operators testing an idea | Owners signing contracts, hiring, or separating personal assets |
General information, not legal advice.
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