Should I register my consulting business as a sole proprietorship or LLC?

I'm working as a web and application development contractor in my off-hours and I'm starting to pull in more business than I can handle. I eventually want to quit my day job and turn the consulting operation into a full-time business.

I work out of a home office and have few personal assets. I expect the business to grow over time and I will eventually want to hire full-time employees and purchase office space.

Sole proprietorship or LLC? Why?

Also, I'll be registering the business with my home address. Will that present any problems?

I agree, LLC is the way to go, especially if you're hiring or signing a serious lease.

And, definitely join a networking or better yet a mastermind type of group that's made up of diverse professionals. Sure, the lead sharing is a benefit but the main reason is people who are "like you" to bounce ideas off of and call bs when you need it.

Home address has not been a problem for me, I also work a lot in IT and nobody cares as long as you have good work and good references. Just keep the dog / kids etc outside when you're on the phone.

LLC "Limited Liability"

LLC, saves you a lot of head aches in the future.

LLC or some form of corporation...get some advice on this from a lawyer who sets up legal entities. Unfortunately unless you know the lawyer very well, you'll probably get a "stock" answer to your question based on that lawyer's specialty. Start a relationship with a tax accountant and ask around! Even though you're business is a "Solo" effort, you REALLY NEED A TEAM BEHIND YOU TO SUCCEED IN BUSINESS! You should consider joining local merchant group to leverage others' experience in this regard.

I recommend reading into the matter further -- that way you'll be able to make the best decision for you.

See the source box for some links.

Hope that helps! I wish you much success & happiness in all your ventures!