| I've got news for you - you're not the only one who's | | | | United States of America. Sole proprietorships are |
| thought about starting a small business. Please | | | | easy to set up. In most cases, people who start up |
| understand that's a good thing. Why? Because there is | | | | their business without any additional formalities end up |
| lots of information around like this to help you get it | | | | as sole proprietorships by default. |
| right the first time around rather than shoot yourself in | | | | Sole proprietorship usually equates to simplicity, its |
| the foot every few days while you're getting it up and | | | | primary disadvantage is its inability to protect the |
| running. | | | | vendor from business liabilities. If there is a claim |
| There are a number of things to think about before | | | | against the business, and its assets are insufficient to |
| you decide to rock and role. There are many different | | | | pay the claim, then the person making the claim can |
| ways to start a small business, and the method you | | | | collect from the owner's personal assets. Although |
| choose can make a big difference not only in how | | | | business liability insurance is available in many industries |
| your business will work, but also in what kind of impact | | | | to provide additional protection against claims, the sole |
| your business will have on your financial situation. | | | | proprietorship's lack of additional business protection |
| Firstly let me point out the types of small business | | | | makes it unattractive to certain types of businesses |
| entities that you can start. These include sole | | | | where liability is a major concern, such as medical and |
| proprietorships, partnerships, corporations, and limited | | | | legal areas. |
| liability companies. | | | | Also, sole proprietorships are not treated as separate |
| In This Case We'll Focus On Sole Proprietorships | | | | entities for tax purposes. Taxpayers who own a sole |
| Statistics released by the Small Business | | | | proprietorship must add Schedule C to their regular |
| Administration, sole proprietorships -- businesses run | | | | 1040 tax return. It's important to remember that sole |
| and managed by the owner directly, without any | | | | proprietors must generally pay self-employment taxes |
| separate business entity -- (at the time of writing) | | | | on their earnings, typically at a rate of around 15%. |
| represent between 70 - 75% of all businesses in the | | | | |