"Sole Proprietorships are “dangerous” because a person is personally liable for all of the liabilities that come with doing business."
Orem, UT (PRWEB) February 14, 2013
LegaLees announces a new article on tax advantages of “the sole proprietorship” to help people understand tax saving options available to them. Attorney Lee Phillips has written the article to help folks understand the advantages and disadvantage of doing business as a sole proprietors.
A sole proprietorship is the simplest form of business structure in the United States. It is easy to start a sole proprietorship, because all a person has to do is decide they want to do business, and it is underway.
Lee Phillips observes, "Taxes are easy with a sole proprietorship. Someone will simply file a normal 1040 form and include a Schedule C that attaches to the 1040. The person's Social Security number will work for any type of a business tax number."
The sole proprietorship offers some significant tax advantages, because whatever happens on Schedule C affects the adjusted gross income, and any company, including a sole proprietorship, can take advantage of tax laws that an individual can’t take advantage of.
Mr. Phillips also warns. "Sole Proprietorships are “dangerous” because a person is personally liable for all of the liabilities that come with doing business. Congress has created statutory protections for the business owners in the form of business entities. The “corporate shield” protects business owners and investors from the liabilities associated with operating the business. A sole proprietorship is not an entity so it doesn’t have any type of liability protection."
Mr. Phillips serves as a counselor to the Supreme Court of the United States. He is the author of 11 books, along with his latest book Protecting Your Financial Future. He has written hundreds of articles for professional people assisting them in finding various strategies to use the law to protect their property, save taxes and make additional money. He has addressed thousands of people in live presentations and enjoys helping other people apply the law and reach new financial heights.