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If one is a sole prop. providing a professional service, is there any benefit to being an LLC? New York allows single member LLCs, it's just that I can't see any benefit for being one.

* Business income is still reported on the schedule C of the 1040.

* Personal liability for malpractice can't be limited to the assets of the LLC. You can always be sued, along with the business, for your own actions. Errors and Omissions insurance is available to the sole prop.

* All debts of the business would, in all likelyhood, have to be personally guaranteed by the owner.

* Liability for personal injury on business property would be covered by insurance in any case.

* Retirement plans, such as Keogh and Solo-K's are available to the sole prop.

Am I missing something? I'm at a professional conference with a number of members just starting out as sole prop., like myself, and many plan to LLC. I just don't see the point.

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