What Are the Benefits of Forming a Sole Proprietorship?
A sole proprietorship is an attractive business model for many people because of its simple structure. With a sole proprietorship, there is no distinction between the unincorporated business itself and its sole owner, who is directly responsible for and entitled to all losses, debts, gains, profits, and liabilities. Consult a business lawyer in Wichita to determine what’s right for your business, and watch this video for a quick introduction to sole proprietorships.
One advantage of a sole proprietorship is that, because losses and gains flow to you automatically, you may net more income using your personal tax rate than a corporate tax rate. Another benefit is the ability to be your own boss, and you are not restricted in the number of employees you can hire to help run your business. If you are embarking on your first business endeavor, a sole proprietorship may be the best option, but it’s important to explore all avenues and to evaluate the future trajectory of your company with the assistance of a knowledgeable business attorney.