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Can an LLC acquire a sole proprietorship?

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Can an LLC acquire a sole proprietorship?

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By definition a sole proprietorship can’t be owned by an LLC. There is no separation of you as an individual and the sole proprietorship. The business is you and you are the business. So unless you can be owned by an LLC then neither can your sole proprietorship. If you are going to have two members in your LLC for the t-shirt design company and want to make the graphic design business part of that LLC, the other LLC member will have ownership rights in both businesses. You need to speak to an attorney or accountant to be sure you choose an appropriate corporate structure, have a well written operating agreement for your LLC and understand the tax and liability issues for both your businesses.

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