Answer:
Step-by-step explanation:
Sole proprietors have unlimited liability and are legally responsible for all debts against the business. Their business and personal assets are at risk. Maybe at a disadvantage in raising funds and are often limited to using funds from personal savings or consumer loans.
To become LLC a sole proprietorship company you have to follow these rules:
As individual states govern business entities, you must follow your state's procedures for changing a sole proprietorship to an LLC. Generally speaking, the process requires filing the same paperwork as anyone else creating a new LLC.
You may have to cancel your sole proprietorship's trade name or Doing Business As (DBA) before you can form an LLC. You may or may not be able to keep your same name depending on state naming laws.