John Ryan,Look at this thread: http://www.biggerpockets.com/forums/12/topics/76052-simple-taxation-questions Here is a summary: Are there any significant differences between a LLC taxed as a proprietor vs a LLC taxed as a S-corp?

With sole proprietor you put yourself in the position to lose everything.

@Thomas Dowell Yes, because you are independent contractor, you are considered to be sole-proprietor and will qualify for Solo 401k.

If they haven't heard of this setup or tell you to just be a sole proprietor - run out of their office!

Hi Everyone,I'm a new member on BP and posted an introduction in the new member introduction section yesterday.I have equity in my primary residence, but have a lot more equity in a non-real estate sole proprietor LLC.  

There are many lawyers who will tell you that a sole proprietor LLC serves no purpose because it is too easy to prove it is used as an alter ego.

You don't have to set up an LLC, it will be easier just to start as a sole-proprietor.

Miss-pronounce L'Oreal or Tresemme when you ask the proprietor for help.  

Hypothetical: What if I closed two deals as a sole proprietor, then set up an LLC and closed, say, ten more deals.

Have you heard the term "Sole Proprietor?"