Jalila owns and manages a small business (E Connections) that sells electronic connectors and network components. The following industries purchase products from E Connections:

mechanical and plant engineering, broadcast and entertainment, and industrial electronics and telecommunications. Jalila has operated E Connections as a sole proprietorship for the past five years. E Connections employs five individuals on a full-time basis and seven on a part-time basis. The part-time workers are classified as independent contractors. Jalila expects the company’s annual revenues to grow at a rate of about 10 percent during the coming five years. She uses a local bank for her commercial banking needs, which includes a credit line of $50,000. Currently, Jalila handles bookkeeping requirements at E Connections. A certified public accountant (CPA) prepares her annual tax return. Recently, a business associate suggested to Jalila that she consider converting the legal structure of E Connections from a sole proprietorship to an LLC. Discuss the advantages and disadvantages of operating E Connections as a sole proprietorship versus an LLC.