Sole proprietor vs LLC: which is better in Uzbekistan

The choice between a sole proprietorship and an LLC affects not only taxes but also the owner's personal liability — we break down the key differences.

Liability

A sole proprietor is liable for obligations with all personal property, an LLC only up to the amount of its charter capital (with rare exceptions).

Taxation

Both options can use the simplified regime, but turnover thresholds and reporting requirements differ.

Reporting requirements

An LLC requires more formalized bookkeeping and corporate documentation than a sole proprietorship.

When to choose a sole proprietorship

A small one-person business without co-founders.

When to choose an LLC

You plan to have several founders, attract investment or work with large counterparties for whom limited liability matters.

Conclusion

Choosing the right form at the start saves time and money on reorganization in the future.