Question about setting up business as sole proprietorship or as a LLC.

segosego89

Hi there,

Apologies if this is not the correct forum to ask the following questions but I'm considering setting up a video game studio at the moment and I'm trying to understand whether I should set it up as a sole proprietorship , limited liability company or as incorporated.

I originally intended the studio to act as a sole proprietorship basically with myself as being the sole person in the business at first but I will probably have to hire one or two more people to help me with projects down the road.

I'm trying to understand what advantage would it be for me to set the business up as limited liability as opposed to sole proprietorship. From reading online the advantages are that I would not be held personally liable for debts(the studio would) and also the taxes the business would have to pay as a LLC are supposed to be significantly lower than that of a sole proprietorship. But my gut feeling is that setting up the studio as a LLC would only be suitable if the studio was earning a significant amount of revenue per annum from the very start?

Sorry if these are silly questions it's just that I'm finding it difficult to read up about these things online as a lot of the stuff I find in search results are difficult to implement to my specific situation.
It would be great if I could get advise regarding what I've described above to give me an idea of what to do.

Kind regards,

jimmii

Here is the link to Pedro's post that should answer a lot of your questions on what each formation type means.

https://touch.boards.ie/thread/2057461008/1/#post96221823

segosego89

Thanks very much for that.