Join Martha Garzon for an in-depth discussion in this video Sole proprietorship: Advantages and disadvantages, part of Running a Web Design Business: Defining Your Business Structure.
…In this video, I will show you some advantages and…disadvantages of sole proprietorships.…A sole proprietorship is ideal for a business consisting of only one person.…There's no distinction between the business and the owner.…Let's take a look at some of its key advantages.…A sole proprietorship is the simplest business structure.…There are no formal registration requirements to create this type…of business.…Therefore, it's inexpensive to form and maintain.…Sole proprietorship are also easy to maintain,…because they don't have complex operational, legal and tax requirements.…
Taxes for…a sole proprietorship are simple, since the business and the owner are the same.…The business is not taxed separately.…All business income and…losses are reported through the owner's personal income tax return.…Distributing profits in a sole proprietorship is also very easy.…Since this type of business only involves a single owner,…all the profits are allocated to one person.…If you have a great year, you can keep all the rewards for yourself.…
- Understanding your business-structure options
- Choosing your business structure using five key questions
- Establishing business names and fictitious business names
- Obtaining local licenses and permits
- Applying for city/county tax receipts
- Opening a business bank account
- Understanding state and federal taxes
Skill Level Beginner
1. Overview of Business Structures
2. Sample Businesses
3. Forming a Sole Proprietorship
4. Forming a Limited Liability Company (LLC)
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