When you compare both terms at the level of personal liability, you will see an LLC is more beneficial than a sole Proprietorship. In a sole proprietorship, the liability is not limited, and the owner of the business is liable to his assets to pay the company’s debts. We have seen in most cases. Owners have to sell their personal property to clear out the due losses of the business. On the other hand, an LLC has the feature of limited liability. In case of any loss to the company, the liability will be limited to its value of shares and assets. There is no liability upon the founders of the company. So in a sole proprietorship vs LLC, the clear winner is an LLC-based business.