Waseda says, hello Laura, I'm a big fan and thank you so much for providing good financial information.

I'm starting a local cottage business creating

freeze-dried foods that I can operate in my kitchen. My startup capital is

less than 5,000 and I plan to work alone.

What's the difference between having an LLC

and a sole proprietorship?

And which is better for protecting my finances?

Thank you for your question, Wasita.

The business entity you choose is an important consideration that many small business owners,

freelancers, and contractors need help with.

So if you have a part or full-time income from a side gig or a

business or you want to create an additional source of income this year with

your own business, stay with me. I'll explain the differences between

having a sole proprietorship and an LLC, and which option may be best for you as you launch

and grow your venture.

Hey everyone, thanks for joining me this week.

I'm Laura Adams, a personal finance expert

who's been hosting the Money Girl podcast

since 2008 with over 42 million downloads.

I'm also the founder of The Money Stack, a weekly newsletter helping you build your bank account

and leverage on your terms.

I'm also a speaker for companies, conferences,

...