Business structure

What is needed for a sole proprietorship? No formal action is required to form a sole proprietorship. If you are the only owner, this status automatically comes from your business activities. In fact, you may already own one without knowing it. If you are a freelance graphic designer, for example, you are a sole proprietor. … Read more

Why would a company go from Inc to LLC? One common reason for changing a corporation to an LLC is to avoid double taxation. A corporation faces double taxation because the income it earns is taxed first within its hands, and then a second time in the hands of its shareholders. Read more on www.legalzoom.com … Read more

Is it better to have multiple businesses under one LLC? An Increase in Potential Risk. The advantage of an LLC is the limited liability it affords its owners. When you run two separate businesses under two separate LLCs, the assets and income of each individual company is also protected from any liability risk which might … Read more

Can I change my business type? In most cases, you can change your business type. Consult your state and a small business lawyer to find out if you can change your business structure from the one you have to the one you want. Read more on www.patriotsoftware.com As a business owner, you can come across … Read more

Why is sole proprietorship the best? Easy and inexpensive to form: A sole proprietorship is the simplest and least expensive business structure to establish. Complete control. Because you are the sole owner of the business, you have complete control over all decisions. Simplified tax preparation. Read more on www.sba.gov A sole proprietorship is a type … Read more

What are the major disadvantages of a sole proprietorship? The biggest disadvantage of a sole proprietorship is that there is no separation between business assets and personal assets. This means that if anyone sues the business for any reason, they can take away the business owner’s cash, car, or even their home. Read more on … Read more

What are the advantages of sole proprietorship? Advantages of a sole proprietorship. Minimal paperwork and low set-up costs are two major benefits of having a sole proprietorship. In addition, there is the ease of maintaining it. In fact, according to the SBA, it’s the simplest and least expensive business type you can establish. Read more … Read more

What is the best business structure for a food truck? If you plan to run a food truck on your own and exercise complete control, then a sole proprietorship may be your best entity formation bet. The con to forming a sole proprietorship is that there is no liability protection. Read more on fundbox.com In … Read more

How do I make one LLC own another LLC? If you set up multiple LLCs, you will have to file LLC forms and pay a fee for each one. Each LLC will need to keep its own records and maintain its own bank account, payroll and tax documents. Setting up a parent-subsidiary structure will not … Read more

Can a sole proprietor have 2 DBAs? Multiple DBAs. When it comes to a sole proprietorship, it is required to only need one DBA. Being able to apply for multiple DBAs under a sole proprietorship depends on how many your local/state government will allow. Each filing of a DBA costs money, so registering multiple DBAs … Read more