Sole Proprietorship - Schedule C
What are some advantages of selecting to be a Sole Proprietor compared to other entities?
A sole proprietorship is a business opened under the name of one individual or married couple. The sole proprietorship is not a separate entity, and all taxes are filed on a personal tax return. There are many advantages to starting a sole proprietorship. You can start a sole proprietorship with as little as $20 because in most states this is the most you will pay for a business permit. Other more expensive filings are not needed, so you can save the money you would spend on a lawyer on your business. In a sole proprietorship, the owner keeps all the profits. You do not have to share profits with investors as you would with a corporation. As opposed to a corporation, you can use fund from your business for personal use. In business forms where there are partners or investors, you have to get permission to take money out of the company for personal expenditures. The owner is the decision maker in a proprietorship, so you do not have to clear decisions with a board of directors or a partner in a partnership. If your business fails, all losses are your own, and you don't have the headache of paying back business partners. You will also have no lawsuits from angry investors as you would have with a corporation.
Need Professional Help?
If you need help with "Sole Proprietorship - Schedule C" or have other tax questions, we can help you find a local licensed tax preparer for a free, no-obligation consultation.