Posts Tagged ‘sole proprietorship’
Why a Sole Proprietorship or General Partnership is Very Risky
One of the most important reasons for forming any legal entity like an LLC or corporation to run your business is LIABILITY PROTECTION. I don’t need to tell you that a growing lawsuit epidemic is going on in the United States and it only appears to be getting worse. Statistics reveal that 1000′s of lawsuits » Continue…
In a nutshell, what are the advantages and disadvantages of incorporating?
The main advantages of incorporation are 1) liability protection, and 2) tax savings. The liability protection provided by incorporating simply means that if your business is sued and the person suing is successful in getting a judgment, they can only go after business assets to satisfy or pay the judgment. The corporation provides a shield » Continue…
Isn’t it easier and less expensive to just use a sole proprietorship or partnership?
The main disadvantage of doing business as a sole proprietor (one person) or partnership (two or more individuals) is the risk of liability. You have no limited liability protection like you do if operating in the corporate or LLC form. This means your personal assets are subject to being taken if someone files a lawsuit » Continue…
In what form or entity do most small business owners choose to operate?
Some new or start-up businesses operate as sole proprietorships due to the ease and low cost of starting up. However, if the business owner desires to operate in one of the legal forms or entities, the most common and practical choices include the partnership, regular or C corporation, S corporation or limited liability company (LLC). » Continue…
