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One of the most compelling reasons to register as an LLC is the protection it offers for your personal assets. As a sole proprietor, your personal bank accounts, home, car, and other valuables are at risk if your business faces legal action or debt. An LLC creates a legal separation between your personal assets and your business liabilities.
This means that if your LLC is sued or incurs debt, your creditors cannot pursue your personal property. The liability is generally limited to the assets owned by the business, significantly reducing your financial risk and providing peace of mind to entrepreneurs concerned about personal financial exposure.