Company Formation
Choosing the right business structure can help you manage risks and save on taxes. Our company formation services make this easy. When starting a business, the first step is deciding on the right business type.
Common Business Structure for
Small Businesses
What is Sole Proprietorship?
A sole proprietorship is a business in which an individual owns an unincorporated company, so the owner is personally responsible for the company's debts and other financial obligations. A sole proprietorship is the default business structure operated by a single self-employed person and is the most common entrepreneurial structure choice.
Tax Implications
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Business income is taxed at the personal income tax rate
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Subject to self-employment tax (Self-employment Tax)
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All income with total taxes of $1,000 or more, taxes may be paid quarterly
Why choose Sole Proprietorship?
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Easy to set up: No legal steps are required to set up. If you are the sole owner and start running a business, you will automatically become sole proprietorship.
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Avoid double taxation: as a sole proprietorship operator, you can avoid double taxation.
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Simple tax filing: There are not as many complicated schedules and tax forms compared to other business types, and tax reporting requirements may be simpler than other business types.
Need help with your taxes?
Whether you've chosen us as your tax representative or used our other services, feel free to Contact Us for support with your tax return.