Many Indian founders ask: “Why should I bother with a U.S. LLC when I can just run as a Sole Proprietor in India?”
Here’s the difference ⬇️
✨ Sole Proprietorship (India)
- Easy to start, but no legal separation between you and the business.
- All profits are taxed as your personal income.
- Risky → if something goes wrong, your personal assets can be taken.
✨ U.S. LLC
- Limited Liability → your personal assets stay safe if business faces losses or lawsuits.
- International credibility → U.S. clients and platforms (like Stripe, PayPal, Amazon) trust LLCs more.
- Easy compliance → especially if you don’t live in the U.S.
💡 Think of a Sole Proprietorship as “you = business”, but an LLC as “business is its own legal person.”
Question for the community: 👉 Which one do you think gives you more peace of mind as an entrepreneur — fast setup with risk (Sole Prop) or global structure with protection (LLC)?