"Disadvantages to LLC status
The paperwork is fairly straightforward, especially for single-member LLCs. If your LLC has multiple members or is a complex arrangement, you should hire a business attorney to assist you in establishing your LLC.
When should you consider LLC status for your business? If you wish to protect your personal assets. If you have no business income or assets yet, then, probably no need to worry about LLC status.
I operated my accounting business as a sole proprietorship for its first six years. After that, I was attracting more clients and generating more income. I already had professional liability insurance, but I decided it was time to add limited liability status to my sole proprietorship. I applied to be a single member LLC in my state for filing the paperwork and paying a $125 fee.
Problem with partnerships
I usually discourage authors from forming a business partnership, warning them that a partnership is like being married but not being in love. You maybe responsible for debts the other person can take on. Partnerships have complex tax situations necessitating professional expertise, and they may require a lawyer to draft the partnership agreement."