Sole Proprietorship - Schedule C

What are some advantages and disadvantages of selecting to be a Sole Proprietor compared to other entities?

Some advantages are: it has minimum legal restrictions; and is easy to discontinue. Some disadvantages are: unlimited liability; your income tax cannot be deferred by retaining profits; and you may not bring in new owners or outside capital contributions. Speak to your local CPA to determine the best entity choice for your needs.

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