One of the most innovative and profitable businesses in the world, Amazon has revolutionized the retail sector. But a lot of people are unsure if Amazon is a company or not. Yes, Amazon is a corporation; that much is clear. It is a publicly listed business that is governed by a board of directors.
A Limited Liability Company (LLC), on the other hand, is a sort of business organization that combines a corporation and a sole proprietorship. It is taxed like a partnership and offers its owners, referred to as members, limited liability protection. A single-member LLC is one of the types of LLCs that can be owned by just one individual.
Despite certain similarities, a single-member LLC and a sole proprietorship are not the same thing. A sole proprietorship is a type of business where the owner, who also runs it, is personally responsible for all of the company’s debts and liabilities. On the other hand, a single-member LLC offers its owner limited liability protection, meaning that the owner’s private assets are shielded from the debts and responsibilities of the company.
You do not have to register your business with the state if you are a lone proprietor. However, you might need to file a “Doing Business As” (DBA) with the state if you are conducting business under a name other than your own. On the other hand, if your company is an LLC, the state where you are doing business requires you to register.
There are a number of drawbacks to operating as a sole proprietorship. The fact that the owner is personally responsible for all of the company’s debts and responsibilities is one of its key disadvantages. This implies that the owner’s personal assets may be at stake if the company accrues debts. A sole proprietorship may also find it challenging to raise money or obtain a loan because it is not a distinct legal entity.
In conclusion, it should be noted that Amazon is a corporation with a stock market listing. One individual can own an LLC, and such an LLC is not the same as a sole proprietorship. When operating as a sole proprietorship, you are exempt from registering your firm with the state; but, when operating as an LLC, you must do so. Finally, being a sole proprietorship has drawbacks such as difficulty raising financing and personal liability for business debts.