One of the biggest advantages of forming an LLC is having limited personal liability for legal lawsuits. A court can use business assets but not personal assets to settle a dispute. Financially, being an LLC has its perks as well. For example, setting up a business bank account can be easier if you have formed an LLC. This is because banks may require you to be an LLC or corporation to open a business bank account or small business credit card. It’s also easier for LLCs to raise money than sole proprietors.  LLCs can enjoy other tax benefits that sole proprietors and corporations don’t. That said, it’s important to keep in mind that there are some disadvantages and additional costs to being an LLC that other business types may not encounter.