{"id":83,"date":"2014-05-23T20:24:05","date_gmt":"2014-05-23T20:24:05","guid":{"rendered":"https:\/\/www.jvlawgroup.com\/blog\/?p=83"},"modified":"2017-12-12T11:46:35","modified_gmt":"2017-12-12T11:46:35","slug":"incorporate-operate-sole-proprietor","status":"publish","type":"post","link":"https:\/\/www.jvlawgroup.com\/blog\/iv-law-group-front-page\/incorporate-operate-sole-proprietor.html","title":{"rendered":"Incorporate: Should I operate as a sole proprietor?"},"content":{"rendered":"

\"JV<\/a><\/span><\/p>\n

For many of our clients starting their own businesses, a question we hear often is whether they should incorporate.\u00a0\u00a0 The answer to this question is not simple and requires a more thorough analysis of the business\u2019 operations and owner\u2019s long-term goals.\u00a0 However, there are several considerations to keep in mind when choosing the business structure.<\/span><\/p>\n

1)\u00a0\u00a0 <\/b>Liability<\/b><\/p>\n

As a sole proprietorship, you will be held personally liable for the business\u2019 debt and anything that occurs in your business.\u00a0 An individual can sue the business and also go after the owner\u2019s personal assets.\u00a0 If you incorporate the business, corporations are protected by limited liability.\u00a0 An individual can only sue the business and go after the business assets\u2014your liability is limited to the amount you have invested in the corporation.<\/p>\n

2)\u00a0\u00a0 <\/b>Ease of formation<\/b><\/p>\n

Creating a sole proprietorship is simple\u2014if you are planning to operate under your name as an individual, no registering is required.\u00a0 In order to incorporate, you would be required to register the business name with the Secretary of State and the documents for incorporation are more complex.<\/p>\n

3)\u00a0\u00a0 <\/b>Administration<\/b><\/p>\n

<\/b>Sole proprietorship is the simplest kind of business structures.\u00a0 It is less costly and not as complex to maintain for accounting and administrative purposes.\u00a0 As a sole proprietor, you report income and expenses on you personal tax return (Schedule C).\u00a0 If you incorporate, the corporation needs to file its own annual tax return.<\/p>\n

4)\u00a0\u00a0 <\/b>Taxes<\/b><\/p>\n

<\/b>A sole proprietor and a corporation are taxed differently.\u00a0 Forming a corporation can provide tax benefits such as health insurance deductions, retirement plans, and investment benefits\u2014benefits that are generally not afforded to a sole proprietor.\u00a0 The tax implication surrounding the business structure is one thing you should discuss with an accountant or attorney when deciding which business structure to form.<\/p>\n

IF YOU HAVE ANY QUESTIONS OR NEED ANY LEGAL ADVICE, PLEASE FEEL FREE TO CONTACT JV LAW GROUP AT 714-752-3270.\u00a0 WE ARE ALWAYS HERE TO HELP.\u00a0<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"

For many of our clients starting their own businesses, a question we hear often is whether they should incorporate.\u00a0\u00a0 The answer to this question is not simple and requires a more thorough analysis of the business\u2019 operations and owner\u2019s long-term goals.\u00a0 However, there are several considerations to keep in mind when choosing the business structure.…<\/p>\n","protected":false},"author":3,"featured_media":84,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.jvlawgroup.com\/blog\/wp-json\/wp\/v2\/posts\/83"}],"collection":[{"href":"https:\/\/www.jvlawgroup.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jvlawgroup.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jvlawgroup.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jvlawgroup.com\/blog\/wp-json\/wp\/v2\/comments?post=83"}],"version-history":[{"count":8,"href":"https:\/\/www.jvlawgroup.com\/blog\/wp-json\/wp\/v2\/posts\/83\/revisions"}],"predecessor-version":[{"id":829,"href":"https:\/\/www.jvlawgroup.com\/blog\/wp-json\/wp\/v2\/posts\/83\/revisions\/829"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.jvlawgroup.com\/blog\/wp-json\/wp\/v2\/media\/84"}],"wp:attachment":[{"href":"https:\/\/www.jvlawgroup.com\/blog\/wp-json\/wp\/v2\/media?parent=83"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jvlawgroup.com\/blog\/wp-json\/wp\/v2\/categories?post=83"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jvlawgroup.com\/blog\/wp-json\/wp\/v2\/tags?post=83"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}