Unlimited Liability means that sole proprietors and general partners must pay all debts and damages caused by their business. Do sole proprietorships have limited liability… Read More »When A Sole Proprietor Incurs Any Business Debts Or Damages They Are?
Partnerships and sole proprietorships are unincorporated business entities with limited life and unlimited liability. A partnership and sole proprietorship ends with the death of a… Read More »Does Sole Proprietorship Have Unlimited Life?
You cannot legally deduct the cost of state required insurance, including worker’s compensation. Which expenses Cannot be deducted? Anything to do with personal activities or… Read More »What Expense Cannot Be Deducted By A Sole Proprietor?
No, A sole proprietor cannot draw salary from his sole proprietor business. He has to be a partner of a partnership firm or a director… Read More »Can Sole Proprietor Draw Salary?
A Sole Proprietorship is not a separate legal entity from the owner. The Proprietor is the owner of the business in this case and not… Read More »Should A Sole Proprietor Take Salary?
Sole trader businesses are the simplest to deal with when writing a will, as any assets used for business purposes are owned by you. You… Read More »Can You Leave A Sole Trader Business In A Will?
LLC is a separate legal entity. Thus, the main advantage of an LLC is that your personal assets are protected. Creditors cannot claim assets that… Read More »Why Might Someone Choose To Organize As An Llc Instead Of A Sole Proprietorship?
You’re required to pay self-employment taxes on your net profits, which occurs when your business income exceeds your expenses. The self-employment tax rate is 15.3%… Read More »Do Sole Proprietors Pay Taxes On Gross Or Net Income?
Yes. A sole proprietor can open a personal or business bank account and use it for business purposes. What is the best bank account for… Read More »Can A Sole Proprietor Have A Business Bank Account?
As only one person is involved in a sole proprietorship, it isn’t typically established by a formal business agreement. For this reason, U.S. legal guidelines… Read More »Can You Change A Sole Proprietorship To A Partnership?