Build the Foundation Before You Build the Marketing
Not every business must be an LLC. Here is neutral education so you can make an informed decision for your situation.
Sole Proprietor or LLC?
Sole Proprietor
A person can operate an unincorporated business as a sole proprietor.
Possible benefits
- • Simple
- • Inexpensive
- • Appropriate for some early-stage businesses
Considerations
- • The owner and business are generally not legally separate
- • Licensing, insurance, taxes, and registration may still apply
LLC
An LLC is a legal business structure that may be appropriate for some business owners.
Potential benefits can include
- • Legal separation
- • Professional structure
- • Easier organization for some businesses
Considerations
- • State filing fees and ongoing requirements may apply
- • An LLC does not guarantee protection in every situation
Business structure decisions can have legal and tax consequences. Consult qualified legal or tax professionals when appropriate.
What Is an EIN?
An EIN is a federal tax identification number issued by the IRS. Many banks request an EIN when opening a business account, and some customers or suppliers may ask for one.
An EIN may be available directly from the IRS at no government charge. You are never required to pay SkillToClient to obtain an EIN.
SkillToClient may offer optional administrative assistance with the application paperwork if you would rather not handle it yourself.
Learn About EINsEIN checklist
- Confirm your business name
- Confirm your business structure
- Gather responsible-party information
- Apply directly with the IRS
- Store your EIN letter safely
Separate the Money From Day One
Separation
- Separate business and personal money
- Why separate records matter
- Clean books at tax time
Accounts & tools
- Business checking
- Debit card
- Deposits
- Payment processing
Recordkeeping
- Bookkeeping basics
- Receipts and mileage
- Estimates and invoices
- Monthly review habit
Set Up Your Business With These
The exact services we walk through in class — LLC, insurance, address, and business credit.
Northwest Registered Agent
LLC filing
Files your LLC or corporation with the state and covers registered agent service for the first year.
File your LLCNext Insurance
Business insurance
General liability and other coverage built for small contractors and skilled-service businesses.
Get coverediPostal1
Business address
A real street address for filings, listings, and customer-facing use so your home address stays private.
Get an addressNav Prime
Business credit
Monitors your business credit and reports your account as a tradeline to the business bureaus.
Start with NavProtect the Work You're Building
General concepts to understand
- General liability
- Commercial auto
- Workers compensation
- Professional liability when relevant
- Tools and equipment coverage
- Business property
Requirements depend on
- Profession
- State
- Customer
- Contract
- Number of employees
- Type of work
Insurance content on this site is educational only and is not an offer or solicitation of insurance. If insurance products are eventually offered through SkillToClient or an affiliated licensed insurance business, those offerings will be clearly separated from educational content and conducted under proper licensing and compliance.
Start With Free Training
We walk through structure, EIN, banking, and insurance concepts step by step.
100% free educational class. No purchase required.