Unless you are an accountant specializing in small business, you may not be aware of a new trend in the world of sole proprietorships: registering with the Internal Revenue Service (IRS) as a limited liability company (LLC). While LLCs have been around since 1977, their popularity among sole proprietors has accelerated in the past decade, data from the IRS reveals.
The figure above shows the fraction of sole proprietorships organized as LLCs along with their share of the revenues of all Schedule C filers from 2001, when the IRS first began to provide these data, and 2011, the most recent year for which these numbers are available.
Image: http://smallbiztrends.com
