What is Sole Proprietorship?
When a person begins a company, there are several options for designating the business’s structure when it is incorporated. The selection of a particular kind of corporate structure has an impact upon how that business files taxes and what sort of responsibilities remain with the owners. Sole proprietorship, as it is known, is the term for a business started by an individual and does not involve other partners. The owner has full liability for the business and stands responsible for any legal issues. Additionally, the owner pays taxes for the business on their own right.
When setting up a business, it is important to understand the advantages and disadvantages of various kinds of incorporation so that you can choose which is right for your unique situation. To discuss how you can set up your business in a way that best benefits you, contact the Orange County business attorneys of Daily Aljian LLC, at 949-861-2524 today.