Question on starting a new business

[brshooter]

I have the opportunity to do some contract consulting for a new business. The job basically consists on the implimentation of a new computer system and some monthly financial reporting and analysis. I do not currently have a business license. The company I will be doing work for recommended that I just form a "LLC" company. After looking at the Oregon Business Guide, It looks like I can just do a "Sole Proprietorship" company. Anyone with any knowledge to share on this?
I will have no employees. It is just business services. I don't really see where I am assuming any real liability in this. Maybe I am missing something. Any suggestions would be appreciated.

[Silver Hilton]

I'm no lawyer, but I have a small business that is under an LLC, and think I have a basic understanding of the issues.

An LLC is one form of a corporation. I believe that the main benifit it gives you is containment of the liability in case something goes wrong and you get sued. As a sole proprieter, if you get sued and lose, all of your personal assets are accessable. The LLC shields those personal assets, as the LLC is the suable entity.

If it's a one time deal, and you know the turf well, and are confident that you know what's up, maybe not worth the bother. Probably cost about $1000-2000 to set up, you be the judge whether htat's a reasonable insurance cost. There is some increased accounting and tax filing burden.

We did it more for the inheritance tax benefits than the liability containment. Those concerns won't be as relevent for a personal services business.