This blog entry will introduce you to the business entity known as the sole proprietorship.
Many prospective clients seek our firm’s advice when starting a new business. The first consideration that you need to make is in what form you want to set up your business.
Until the early eighties, there were only three types of business structures/entities: corporations, partnerships and sole proprietorships.
Sole Proprietorships are the simplest form of business operation as there is no separate filing with the State of Florida, no filing fee, no required separate bank account and most importantly, no separate tax return as business income is reported on Schedule C of the owner’s individual tax return.
The major drawback to the Sole Proprietorship is there is no liability protection from claims and/or lawsuits. If a creditor obtains a judgment against a Sole Proprietorship, then all of the owner’s personal assets could be claimed by its Creditors.
For more information, please contact the experienced business attorneys at The Wallace Law Group with convenient office locations in Boynton Beach, Fort Lauderdale, Aventura and Downtown Miami.