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Sole Proprietorship

By: Kevin, Becca, Natella, and Taylor. Sole Proprietorship. What is Sole Proprietorship?. Sole Proprietorship is a form of running a business in which one person owns all of the assets of the business rather than having a group of people.

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Sole Proprietorship

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  1. By: Kevin, Becca, Natella, and Taylor Sole Proprietorship

  2. What is Sole Proprietorship? • Sole Proprietorship is a form of running a business in which one person owns all of the assets of the business rather than having a group of people. • In simple words, this means that one person essentially owns the company.

  3. Advantages of Sole Proprietorship • You have the final say in all business decisions. • You have the right to sell or give away ownership of the company at any time. • You don’t have to pay corporate tax. • It does not cost a lot of money to obtain the right to be called a sole proprietorship. • There are few formal business requirements. • You, as the owner, can determine salaries of workers.

  4. Disadvantages of Sole Proprietorship • You will be held liable for all debt and malpractice in the company. • Not many investors will put their money into a sole proprietorship. • All of the responsibilities of the company are in your hands. • Difficult to secure lines of credit • The owner must pay Self-Employment taxes

  5. Instructions for starting this business • You do not have to take any formal or legal steps. • Depending on the city, you will most likely have to register your business or apply for a business/occupancy license. • You will need to write a business plan, which will serve as a roadmap. • Choose a name, make sure no one has it, register the name, and trademark the name.

  6. Instructions for starting this business (continued) • Separate personal finances from the business by establishing a business bank account, a business credit card, and business recordkeeping. • Depending on location, you might have to charge sales taxes. • Every year, you are required to keep track of your expenses.. (Profit, spending, etc..)

  7. How the business is taxed by the IRS • The IRS forces Sole Proprietorship companies to pay • Income taxes on the company • Self-employment tax (SE tax) which is a social security and Medicare tax

  8. Examples of this • Financial Planners - Fidelity • Landscapers – Nadler Landscaping • Catering Company – Dennis Dean • House cleaning service – M&J House Cleaning Service • Tutoring – Specific Person • Computer Repair Service – CPR

  9. Citations • http://legal-dictionary.thefreedictionary.com/Sole+Proprietorship • http://www.legalmatch.com/law-library/article/advantages-and-disadvantages-of-sole-proprietorships.html • http://www.inc.com/guides/2010/10/how-to-start-a-sole-proprietorship.html • http://smallbusiness.chron.com/10-examples-sole-proprietors-32858.html

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