NetMoneyLab ยท Oct 23, 2026
Bottom line: a sole proprietorship usually needs no registration beyond local rules, while the SBA says state LLC registration typically costs under $300 and varies.
The SBA describes the main differences this way:
By default, according to the IRS, a one-member LLC is disregarded as separate from its owner for income tax, so the profit is reported on the owner's return.
The SBA says total state registration costs are typically under $300, and the amount varies by state.
The SBA says it suits low-risk businesses and people testing an idea. In our view, that fits a new seller who:
The SBA says an LLC fits medium- or higher-risk businesses, and owners with significant personal assets.
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