What are the differences between a sole proprietorship and a limited liability company
Previously, Neocodex was held in a sole proprietorship. A sole proprietorship, like its name suggests, is owned and run (from the government's perspective) by a single individual. There is no distinction between the individual (me) and the business entity. The owner pays all taxes for the business' profits and has unlimited liability for all of the business' losses. This means that if anyone were to come after Neocodex, they could also come after me personally, because there was no difference between Neocodex and me from a legal perspective.
Now, Neocodex is held in a limited liability company. A limited liability company offers many benefits to the owners. For example, business assets and finances are separated from shareholder assets and finances. In addition, shareholders are protected against any liabilities created by the business; the business is held responsible for its own liabilities. This means that Neocodex is now its own legal entity and must pay its own taxes. It also means that should anyone try to go after Neocodex, the admins will be personally protected from legal matters.
What does it mean for Neocodex?
As far as members are concerned, you won't notice a change at all. However, the admins get to use a shiny new Neocodex bank account and a Neocodex company credit card
The incorporation of Neocodex just means that we are under a different business structure with the United States Federal Government. It doesn't have any effect on the operations of Neocodex.
Why now and not earlier?
As I grow older, I am starting to acquire assets that I want make sure are protected. I am thinking of starting a family some day and would like to be able to support them by saving as much of my earnings as I can now. I don't want to wake up tomorrow with a lawsuit that also goes after my personal property and accounts
More questions?
If you have any further questions, please feel free to post them in this thread


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