Starting Your Business as a Sole Proprietorship
- Jan 8, 2022
Discover the considerations and challenges when starting your business as a sole proprietorship.
Russell Maynard: The simplest type of business to form is a sole proprietorship. In fact, there is no formation of an actual entity at all. The owner simply starts working and having a business. The tax filings associated with a sole proprietorship are made with the owner’s individual tax return, or 1040. Much like LLC’s and S-Corporations, sole proprietorships may be eligible for the QBI deduction, which is a deduction that lowers taxable income. The primary drawback to a sole proprietorship is the lack of liability protection. As a sole proprietor, your personal assets are subject to any liability claims or the claims of any creditors that come about as a result of your business activity.
Business Owner's Guide Video Series
People starting a business for the first time often don't know where to begin. EisnerAmper has developed a series titled Business Owner's Guide: The Cycle from Start-up to Exit.
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