I'm looking to start my own business and the way that seems easiest is opening a Sole Proprietorship.
What are the pros & cons? Are there tax advantages?
Any info will be appreciated.
Thanks in advance.
It's cheap. You can report earns/losses on personal tax form. No paper work.
if you are just starting out,id recommend being a sole proprietor until you get used to the way the irs, your state and your county operates.
its the easiest way to file taxes and like crouching tiger said, its cheap. i paid under 200 to get all the proper licenses and stuff for my business.
I plan on starting a small candy machine vending business. Gumball, M&Ms etc..
I plan on investing $2,000 to start.
My concerns are, for example, if a kid chokes on a gumball and family tries to sue me. If I am a Sole Proprietor, they can go after ALL my personal assets (home, bank accounts, etc).
If I incorporate, is it true ONLY my business is liable? Can they still go after my personal assets?
It wouldn't be so bad for someone to sue me for the small business and I lose it, however, I do NOT want them going after the assets of my wife & I.
So my main question is....should I incorporate and have piece of mind OR just become a Sole Proprietor and get an insurance policy?
Any advice would be appreciated.
i strongly urge you to NOT do a sole pro.
if you are sued your are putting your family's personal assets at risk.
a knowledgeable insurance salesperson can/will tell you about liability risks you will be facing with your new venture and a good lawyer will tell you to always protect yourself.
a good accountant can help too.
you will be dealing with food, machines, inventory, traveling, unsupervised customers, ect.
be careful and protect yourself and your family
i recommend you incorporate and get good insurance.
i also wish people had given me plenty of free business advice when i started.
ttt for capitalism!