Tuesday, July 21, 2009

What Business Entity is Right for You? Sole Proprietorships

Sole Proprietorship

A business owner may choose to form a sole proprietorship because of its simplicity. A sole proprietor does not have to file a separate business tax return; rather, a business owner can just attach a schedule C to his or her own tax return. Although, this business form provides simplicity in set-up, it provides almost no liability protection. Particularly, there is no legal distinction between the owner and the business itself. Consequently, if the owner is sued the owner may be subject to a judgment against his or her personal assets.

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.

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