soleproprietorshipadvantages.com Sole Proprietorship Advantages And Some Disadvantages

soleproprietorshipadvantages.com
Title: Sole Proprietorship Advantages And Some Disadvantages
Keywords: Sole Proprietorship Advantages, Sole Proprietorship, Sole Proprietor, LLC, Limited Liability Corporation, C Corp, S Corp,
Description: Starting business as a sole proprietor can be an advantage if funds are low and your starting from scratch. Protect your assets as you grow with an LLC or and S
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Keyword Count Percentage
Sole Proprietorship Advantages 8 5.46%
Sole Proprietorship 13 5.63%
Sole Proprietor 13 4.39%
LLC 1 0.06%
Limited Liability Corporation 1 0.63%
C Corp 0 0.00%
S Corp 0 0.00%

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Sole Proprietorship Advantages And Some Disadvantages Skip to content Sole Proprietorship Advantages Menu Home Disclaimer About Home Sole Proprietorship Advantages And Some Disadvantages In my 30 some years of owning and operating small businesses the single biggest sole proprietorship advantage I found is having limited or should I say, less government interference. More restrictions is a path government loves to take as they extend their arm to protect us from ourselves. So, study the various business types. Learn about C, S, and LLC or limited liability corporations. Perhaps a non-profit would be best for you. I’m not claiming to be a lawyer or a tax professional so I am not giving advice, only my experiences. I left out partnerships. All I can add is be careful. I’ve had three and one was good. The first question I asked myself when deciding which type of business to open was, how much do I have to lose? If you have a lot of assets then a sole proprietorship may not offer enough firewall to protect those things you treasure. Your neck is always on the chopping block when you own a small business. Last year I went in to shop for truck insurance. My agent asked, “Does your truck have signs?” “Why yes it does” was my answer. To which she replied, “These companies don’t want to insure you because you are a target with signage on your truck. People will see your name and phone number on your truck and think you have deep pockets because you own a business”. Although I’ve never had that happen to me, insurance companies usually focus on areas of risk that have surfaced. Your Sole Proprietorship Advantages May Not Be So Good In Some Cases Whether your business is going into other peoples homes and businesses or customers coming to your office there will always be those who think because you’re in business you have those deep pockets full of money for them to take if you do something wrong. So ask yourself, how much do I have to lose? When I started my first business I had nothing in assets. Our cars were well used and for all practical purposes we probably shouldn’t have started a business because we had no money. We had very little equity in our home and no debt. I would have no employees to start so my risk was limited in that area. It was the advice of my tax professional that a sole proprietorship was best to begin with and when we began to make some good money to reconsider the business type. You can always change from a sole proprietorship, but it’s not as easy to change from one of the other business types. Know what you are getting into in case you want out! Find the best tax consultant you can get. One that you can communicate with. Be prepared to fire him or her at any time if they don’t offer you good advice. They can be your best resource for advancing your business and teach you many more sole proprietorship advantages. I’ve done my best to stay away from attorneys, they will take your money and give you little in return. You can do everything an attorney can do to incorporate on the internet with sites like legalzoom.com. LegalZoom.com is a legal document assistant and not a place for legal advice. Use an attorney if you think you need one, but be careful as you would with any professional. You Can Incorporate Your Business If You’re Leary Of Those Sole Proprietorship Advantages Being self employed can be a lot of really hard work and it can bring a tremendous amount of satisfaction. These sole proprietorship advantages are best for only certain situations as I have described. Remember that even though you may incorporate to protect yourself, unless you dot all the I’s and cross all the T’s the veil of protection becomes null and void and you could lose everything anyway. Trouble knocked on our door in the year 2000 when an employee decided to sue for wrongful discharge. We needed an attorney then in the worst way. Despite the fact that I had done my due diligence when preparing to fire this person, such as conferring with an attorney and the state regarding my right to fire we lost the suit. But, my point here is that our minutes for corporate meetings were not current and threatened that veil of protection to where we could have lost personally even though we were incorporated. It’s not a free ride to safety being incorporated. So today with no employees I actually enjoy working more than if I had the stress of employees and all the paperwork that comes with them by using those sole proprietorship advantages. Recent Posts Is It True A Sole Proprietorship Has Five Advantages 2016 ? SoleProprietorshipAdvantages.com Home Disclaimer About

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