 With a sole proprietorship, you have full control of your business, even more control compared to the partnerships and corporation business structures. In many cases, the owner of a small business will opt to start out using a proprietorship. The owner will probably look at a corporation, forming a partnership or even a Single Member Limited Liability Company (or sole LLC) as the business grows.
What Is A Sole Proprietorship And What Can It Do For You? This is the most popular and easiest type of business to create. Just like the name indicates, a sole proprietorship has just one owner who is responsible for the operation, earnings and obligations of the business. All earnings and profits go to the sole owner. On the other hand, financial obligations, including debts, are likewise the responsibility of that single owner. Strengths and weaknesses include: • A sole proprietorship is straightforward to register and is usually the simplest to launch. Based on the particulars of the business, launching this kind of business needs to have only a small amount of operating capital. • Given that the business is made up of a single owner/operator, that individual has the benefit of making every business decision. The owner has total control. Conversely, if that individual gets sick or is somehow not physically available, the business will be affected, which then will put earnings at serious risk. • Even though the owner gets all the profits, that individual is also fully liable for all financial obligations and business responsibilities. Therefore, the personal assets of the owner are susceptible to claims. By law, that individual is fully responsible for business actions; therefore, that individual might additionally be found legally responsible for mistakes and misconduct in the business operations. In addition, even though the regulatory factors are usually relaxed, income taxes are calculated on the personal amount, and when income increases, the tax percentage will too.
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AuthorYoel “Mo” Molina, I am a lifelong resident of Miami, Fl. I am a graduate of Miami Senior High, Class of 1992, Georgia Institute of Technology, B.S. 1997 and University of Maine School of Law, J.D. 2001. I have been practicing law in Miami Since 2001. I am a former training prosecutor in the Miami-Dade State Attorney’s Office. I have experience in jury trials, appeals, and administrative hearings. I have appeared before judges across the State. My experience ranges from civil litigation matters, collection matters, foreclosure, business and corporate, contracts, real estate, leases and employment matters.. Archives
April 2022
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