Sole proprietorship

From Wikicpa

A sole proprietorship is an unincorporated business that is owned by one individual. It is the simplest form of business organization to start and maintain. The business has no existence apart from you, the owner. Its liabilities are your personal liabilities. You undertake the risks of the business for all assets owned, whether used in the business or personally owned. Although proprietorship avoids the expense for forming a partnership or corporation, many start businesses this way because they are unfamiliar with the other forms of organizations. You include the income and expenses of the business on your own tax return.

When starting a business it is important to make an informed decision on your business structure. Your choice or action can affect your personal liability and tax obligations. You are encouraged to seek additional information and/or obtain the assistance of a qualified accountant or attorney before finalizing your choice of legal entity.

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