Tag Archives: business structure

Sole Proprietorship

Facebooktwittergoogle_plusredditpinterestlinkedintumblr

Sole proprietorshipSole Proprietorship
Sole proprietorship is the most common form of business entity. It is defined as a type of business that is owned by one person and in which there is no legal distinction between that person and the business. There are a number of advantages and disadvantages to this type of business.

A Simple Business

The popularity of this form of business is primarily due to its simplicity. Partnerships and the various types of corporations require a lot more paperwork to get off the ground. Aside from deciding on and registering a name for your business in your state or locality and complying with any basic business licensing requirements in your area, the only thing you need to start a sole proprietorship is an idea and your own drive to succeed. A sole proprietorship, as the name implies, only requires one person to get off the ground, so if it’s just you at this point, then this type of business will be your best option. Technically, many states actually do allow single person corporations, but if you are just starting out, chances are you don’t want to spend limited start-up funds on attorney’s fees to learn the legal ins and outs of incorporating in your state.

LLC – Limited Liability Company

Facebooktwittergoogle_plusredditpinterestlinkedintumblr

Set Up Your LLC Limited Liability Corporation Website Online HelForming an LLC

LLC stands for limited liability company, and it is a type of legal structure for a business. It is a company in which the owners or partners of the LLC personally pay the taxes on the company’s earnings but in whichthe liability of these ownersis limited. In other words, in terms of taxes it is similar to asole proprietorship or a partnership, but as far as liabilityis concerned, it is like a traditional corporation.Advantages of Forming a Business asan LLCAs mentioned in the course of definingan LLC above, one of the biggest advantages is that the owner or partners inan LLC are not personally liable for the debts or liabilities of the company.