However, this is by far the worst form of business to choose. You as the owner are personally liable for all business debts and personally liable for all claims against the business. In addition, you are subject to Self-Employment Taxes on 100% of your reported net profit (AGI). These are bad consequences that can be avoided by proper planning through our teaching you of options and consequences.
Important tip: If your business is currently a sole proprietorship, consider converting to another type as outlined herein.
Please do not hesitate to contact us at (520) 797-1400 for a free consultation regarding these matters.