What are the main differences between being a sole proprietor and an LLC? I have read a lot about it but I need simple english. It seems that the tax is the same unless you have several people involved and depending on the type of business. Why become an LLC if it is treated the same for taxes? If someone could tell me that in laymans terms I would be grateful. I have already located the appropriate forms in SC in the Sec of State office. Thank you.