The Basics of a Sole Proprietorship

 

Do Your Own Taxes - Fee from Refund
Bankruptcy
Claiming Social Security Disability
FREE 2008 CPA Moms Tax Review Details
Divorce & Taxes
Offer in Compromise
Installment Payment for Taxes
Credit Reports
Social Security
Do Your Own Taxes - Fee from Refund
Deliquent Tax Returns
Garnishment
Retirement Planning
CPA Moms Master Index
Overview - Type of Business Entities
Sole Proprietors
Partnerships
S Corporations
How to Incorporate
Incorporating in California
Incorporating in Nevada
C Corporations
LLC's - What is it?
Mileage Expenses
Office in Home
Business Deductions
Sole Proprietor Home Page
Lastest News Sole Proprietorship
Sole Proprietorship Articles
Additional Resources
Want to Join CPA Moms?
Questions for CPA Moms?


Death & Taxes

We have Information to Help You with Either


Got a Question?


IRS wants you to retire Financially Free!     We will answer your questions and give you options about how to become Financially Free when you retire

Tax answers/options when you sell your Home.      We will answer your questions about the tax free home sales and give you options on tax free exchanges

So, You got a letter from IRS?  We can help.    Letters from IRS are scary. We will answer your questions at no charge.

S-Corp, LLC, C-Corp, Partnership - Your Choice?    Selecting the correct Business Entity is confusing.  We will give you the tax options of each Business Entity.

How not to pay taxes when you sell income property.    We will explain how to do a tax free exchange & not pay taxes when you sell your income property.

To pay for Services - Please click on Paypal Logo below

Readers? Brag Basket
photo credit: Gaetan Lee Business Opportunities Weblog readers are a smart and entrepreneurial bunch. Everyday I get emails telling me all about their new projects. Once a week, I’m going to feature some of them in a post and let other’s comment on their own new ventures. If you have something to brag about, [...]
Even Business Owner?s Need A Toolkit Once In A While
When something is broken and it needs fixed, what do you do? You have 2 choices, call someone in to fix it or do the work on your own. Ironically, it’s not that much different in business. You could either call someone in to help answer your questions and do the work, [...]
Cool Tool Of The Week: SR&ED Self-Assessment Tool
SR&ED is something that small businesses often overlook, assuming that SR&ED is only for big businesses or that the work they're doing doesn't qualify. Well SR&ED tax incentives are available to...
Shipwrecked Treasure Allegedly Found Via Google Maps
Slashgear: Treasure hunter Nathan Smith testifies that he used Google maps to find buried treasure in South Texas. Smith also monitored the treasures location with updated satellite images to ensure that no one was poking around long enough to gain legal rights to his findings. The 39-year-old musician from Los Angeles located a 19h century boat, which [...]
Top 10 Tips For Starting A Business That Will Succeed
These are the things I wish someone had told me before I started my own business. Following this advice will make it a lot easier to start a successful business...
Is Your Business Planning Done?
If you haven't done your annual business planning yet, Quick-Start Business Planning will show you how to put together the basics of a business plan that will invigorate your business...
Launching A Biz While Unemployed
The Wall Street Journal: Being unemployed gives me a large chunk of discretionary time, but only a finite amount of which I can dedicate to a job search. The law of diminishing returns kicks in and it’s better to focus efforts elsewhere for the sake of productivity, not to mention sanity. I’ve always wanted to run my [...]
Obamabilia Craze Is Boon To Retailers
San Francisco Chronicle: Can President-elect Barack Obama save the economy? Well, it’s true that he has assembled a crackerjack team of economic advisers, but that’s only one way Obama can help America get back on track. American entrepreneurs and salespeople of all stripes have recognized the opportunity in Obama’s win - namely, that anything associated with the [...]
GripBoard Brings Surf Something New
San Clemente Times: It’s said that some of the best ideas are born of despair. For Thorpe “Sharky” Reeder, that expression is all too true, and the Capistrano Beach inventor-artist-fisherman hopes one day that the resulting idea will one day pay off in financial success. Reeder is the inventor of the GripBoard, a wave riding device that [...]
Marketing Department Helps Jump Start New Businesses
Starting a new business is hard but with the right information that business can get started off on the right foot. DM-Creative.com is dedicated to helping businesses get that help. Through pages of free information their website shares ideas on how other businesses may get started. For those that need a little [...]
Outsourcing Entrepreneur Admits Giant Accounting Fraud
SmartCompany: India’s business sector is reeling after revelations that the boss of outsourcing giant Satyam Computer Services has falsified the company’s accounts and inflated its profit for several years. Satyam’s chairman Ramalinga Raju admitted the fraud in a four-page letter to the Bombay Stock Exchange. The company employs more than 50,000 people across 66 offices worldwide, including [...]
Buying A Franchise May Be The Best Way To Start A Business
...especially if you have no business experience. Many franchises are turnkey operations, so you can literally walk through the door and start running your own business. And well-known franchises offer...
Ignorant And Inexperienced: Good!
photo credit: debaird™ The founder of Crate and Barrel said that it was ignorance and inexperience that got his first store started. “We didn’t know anything about retail,” Segal recalled. “I had grown up in the restaurant business, so I knew about service but not about retail. We didn’t know a market from a markdown. We didn’t know [...]
If A 13 Year-Old Can Launch A Startup You Have No Excuse
TechCrunch: My name’s Scott. I’m 13 and have launched a web startup.” So began an email exchange over last weekend which culminated with me chatting to Scott’s mum today to verify, that, indeed, he was actually 13 and really had launched a blogging site for people in Scotland. ScotBlog.net is essentially a social network for people in [...]
Top 10 Tips For Starting A Business That Will Succeed
These are the things I wish someone had told me before I started my own business. Following this advice will make it a lot easier to start a successful business...
Buying A Franchise May Be The Best Way To Start A Business
...especially if you have no business experience. Many franchises are turnkey operations, so you can literally walk through the door and start running your own business. And well-known franchises offer...
Niche Biz: GPS-Enhanced Cows
Fortune Small Business: Building and maintaining fences for cattle is a time-consuming and costly endeavor. That’s why a GPS bovine headset may come in handy. This past year, Dean Anderson and Daniela Rus have designed and tested Ear-a-Round headsets on the USDA’s 193,000-acre ranch near Las Cruces, N.M. Each Ear-a-Round is equipped with a GPS receiver, an [...]
Can Twitter Be Useful For Biz?
David Wallace At Search Engine Guide: If you have yet to hear about Twitter, I might ask you if you have been living in a cave and for how long. The micro-blogging platform that few knew about a year ago has now gone mainstream with over 6 million users - a number that is growing daily. Even [...]
Who Owns Your Great Idea?
The New York Times: Peter Zummo, a senior double-majoring in design and mechanical engineering at Rensselaer Polytechnic Institute, is used to explaining the products he thinks up for his studio-class assignments. But last spring, he found himself answering questions of a different kind in a conference room at Rensselaer’s office of technology commercialization, which tracks and [...]
Top Canadian Tax Software Programs
Income tax preparation software can make the chore of preparing and filing your income tax easier. It's almost impossible to go wrong or to leave something out when you're using...
What's Your #1 Tip For Staying Solvent In A Recession?
I've written before about how you can recession-proof your business, presenting specific things that you can do to keep your business profitable during tough times. But today let's cut to the...
Teaching Is Good Marketing
Teaching is a great way to promote your business. In 10 Low-Cost Ways to Promote Your Business I talk about giving seminars or presentations related to your business to get...
Changes To Canadian Small Business Taxes For The 2008 Tax Year
Here's a list of the main Canada income tax changes that may affect your small business taxes for the tax year 2008. While there are no changes that will have...
Free Business Courses: Sign Up Now
Do your goals include becoming more successful, more organized or productive? Then you might want to sign up for one or more of the four free business courses I offer...
Music Marketers Target Female Shoppers
Billboard: With CD sales dropping fast, the music business is exploring nontraditional ways to expose consumers to recording artists. Among the new sales and marketing vehicles are Tara Leigh Music Party and musicShop. Both launched in November to target female music buyers. Tara Leigh is part of House Party, an Irvington, New York, company that stages Tupperware [...]
What's Your #1 Tip For Staying Solvent In A Recession?
I've written before about how you can recession-proof your business, presenting specific things that you can do to keep your business profitable during tough times. But today let's cut to the...
Top Canadian Tax Software Programs
Income tax preparation software can make the chore of preparing and filing your income tax easier. It's almost impossible to go wrong or to leave something out when you're using...
Five Things Every Small Biz Owner Should Do
Open Forum: Five things that every small business owner should do in 2009. Don’t consider it a New Year’s resolution because there’s a whole psychology behind such things. Just do it. 1. Act like a prospective customer and call your company to see how the phone system and receptionist treat you. 2. See if your website has a [...]
Bad News For Workers Is Good News For Linkedin
USA TODAY: Where everyone else sees economic gloom and doom, Reid Hoffman sees opportunity. As the freshly minted CEO of LinkedIn (and its founder), he is shepherding a moneymaking tech company in battered Silicon Valley. And he anticipates more growth next year. That is no small achievement. The social-networking site, which lets business professionals create online profiles to [...]
Is Your Business Planning Done?
If you haven't done your annual business planning yet, Quick-Start Business Planning will show you how to put together the basics of a business plan that will invigorate your business...
Turn Your Home Office Green, To $ave Green
CBS: In this economy, businesses are trying to cut costs any way they can. Turns out, one big way to save is by going green. Not only can the more than 27 million small business owners in the United States play a huge role in conserving our natural resources, but their green actions can help their [...]
Amish Flock From Farms To Small Bizs
The New York Times: The Amish, the religious sect that has determinedly kept the modern world at bay, have been leaving a quiet life of farming for jobs in small businesses — all the while trying to balance their own values with the culture of the marketplace. “Their whole intent is to not be caught up in [...]
Think Like An Entrepreneur In All Areas Of Life
American-Statesman: Is becoming an entrepreneur on your list of New Year’s resolutions? “Life Entrepreneurs,” a new book by Christopher Gergen and Gregg Vanourek, argues that the concept isn’t limited to your career — it’s about creating the complete life that you want. The book takes readers through a process of getting in touch with their core identity, [...]
Changes To Canadian Small Business Taxes For The 2008 Tax Year
Here's a list of the main Canada income tax changes that may affect your small business taxes for the tax year 2008. While there are no changes that will have...
Free Business Courses: Sign Up Now
Do your goals include becoming more successful, more organized or productive? Then you might want to sign up for one or more of the four free business courses I offer...
Super Bowl Means Biz
The Tampa Tribune: Faye Dowdell looks for any edge she can find in today’s gloomy economy. Dowdell spent the morning at the Tampa Port Authority office for the first installment of the NFL’s Super Bowl XLIII Playbook for Small Business Workshop Series. The free workshops are designed to help local small and minority businesses. The NFL’s business workshops [...]
Join The Conversation In The Forum
Here's what people are talking about in the Small Business Canada Forum right now. Why not pop in and see what other people have said about these topics and add...
Company Scores With Fan Fests
Star Tribune: Managing sports fan festivals is proving to be an entrepreneurial slam dunk for Joe Gallagher and his St. Paul-based FILO Productions. In February, FILO Productions (FILO is an acronym for first in, last out) will help produce the National Basketball Association’s All-Star Jam Session for the seventh consecutive year. The interactive, 500,000-square-foot fan fest is the [...]
Fitness Gadget Tracks Every Calorie
Fortune Small Business: After falling in love with the Nintendo Wii’s physically demanding sports games, serial entrepreneur James Park, 32, started to ponder other ways to combine video games and fitness. The result: a $99 lipstick-size gadget that clips on to your clothes and uses a motion sensor to track everything from steps taken to sleep [...]
Cool Tool Of The Week: SR&ED Self-Assessment Tool
SR&ED is something that small businesses often overlook, assuming that SR&ED is only for big businesses or that the work they're doing doesn't qualify. Well SR&ED tax incentives are available to...
Teaching Is Good Marketing
Teaching is a great way to promote your business. In 10 Low-Cost Ways to Promote Your Business I talk about giving seminars or presentations related to your business to get...
T-Shirt Monster Allows You To Give Your Clothing Personality
Clothing displays personality. Personalized clothing makes it that much more fun. T-Shirt Monster has been offering a fun way for people to create custom t-shirts, without the need for graphic design. Although they are based in Canada, they welcome orders from other countries. For creative individuals interested in selling their designs, they can [...]
Magic Johnson Has Magic Touch In Biz
USA TODAY: Almost nobody would question Earvin Johnson’s skill on the basketball court. But in his second career as an entrepreneur, there were doubters from the start. Johnson, best known by his nickname “Magic,” remains one of the best players to ever don the gold and purple Los Angeles Lakers uniform. Executives he pitched on a business [...]
Small Business Managers Turn Into ?Mouse Potatoes?
InformationWeek: Spending too much business time on the computer when you’re not at work? You’re not alone. Small-business owners and managers, already tethered to their computers for long periods, are turning into “mouse potatoes,” increasingly eating and working while on their computers and while online, according to a survey released Tuesday by office supply retailer Staples. After analyzing [...]
Join The Conversation In The Forum
Here's what people are talking about in the Small Business Canada Forum right now. Why not pop in and see what other people have said about these topics and add...

The Basics of a Sole Proprietorship

Jose Valdez


A sole proprietorship is the easiest and least expensive form of business structure to set up.
Most businesses start out as sole proprietorships and some move on to a more sophisticated for of
business structure. A sole proprietorship is owned by one individual.
The business and the individual are seen as one and the same in the eyes of the law. This means that
the sole proprietor owns all assets and profits that are generated by the business. This also means that
he or she is completely responsible for all of the business's debts and responsibilities.



A sole proprietorship can do business under the name of the owner or it can do business using a
fictitious name,
such as Jay's Car Repair. This is also called "doing business as", and does not create a legal entity that
is separate from the business owner.



A sole proprietor typically signs contracts or checks using his or her name and will also typically
have checks that are made out to the business written in his or her name, even though the business may be
operating under a fictitious name. The reason for this is that
the business and the owner are one and the same in the eyes of the law.



Many sole proprietorships combine personal and business transactions, such as using the
same checking account for both.



Sole proprietorships can sue and be sued in the name of the sole proprietor.



Advantages of a Sole Proprietorship
<ul>
<li>Sole proprietorships are the easiest and least expensive form of business to set up and maintain</li>
<li>The sole proprietor owns all assets and profits that are generated by the business</li>
<li>Profits from the business are reported on the sole proprietor's personal tax return</li>
<li>A sole proprietorship is easy to dissolve is desired</li>
</ul>



Dis-Advantages of a Sole Proprietorship
<ul>
<li>A sole proprietor is completely responsible for all of the business's debts and responsibilities. Both
personal and business assets are at risk</li>
<li>A sole proprietor may have a more difficult time raising fund</li>
<li>Hiring and retaining higher quality employees can be more difficult</li>
<li>Some employee benefits are not directly deductible from business income</li>
</ul>



this article is free to reprint if the following text and link are included:



www.A Guide to Starting a Business.com



 

article source:for a guide to starting a business visit
www.aguidetostartingabusiness.com

 

 

Privacy Policy ......... About Us  ......  Disclaimer ..... Copywrited 2005 - 2006 & Developed by  Tax Net Inc