Sole proprietorships are typically businesses that have one owner. There many advantages to operating a business as a sole owner. One of those advantages is that it is fairly easy to form. When operating a sole proprietorship, filing an independent tax report for your business is not mandatory. It is optional for the owner to hire employees to help run the business. The owner is in charge of making all business decisions and transactions. Sole owners have the ease of selling their business, closing it or giving it to his heirs. While opening businesses sometimes require you to obtain a business license, sole proprietorships are typically less expensive than others. Also, it is often less expensive to start a sole proprietorship.
On the other hand, there are also disadvantages associated with starting a sole proprietorship. While being the sole decision maker can be an advantage, it can also be a disadvantage. Being a sole owner will hold you personally liable for all business dealings. This can sometimes prove to be costly at times. Your creditors can attach liens on your personal assets if there becomes a time when you are unable to satisfy your obligations. Sole proprietors tend to have a harder time obtaining loans from banks. The banking industry may hesitate to make loans to sole proprietors simply because of the percentage that struggle to succeed. While sole proprietors are exempt from paying taxes, the owner can find it difficult to pay the self-employment taxes that are associated with being a sole proprietor.
S Corp and C Corp
The C Corporation is the most common. The S Corporation is different from the C Corporation because it has a special tax status. According to IRS.gov “It gets its name because...
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...y more filing fees. Even though the members of LLCs are not required to pay federal taxes, in the end they could wind up paying out more than some of the other business models. Depending on your geographic location, the rules for an LLC may be different.
Being a business owner has its perks, but with the absence of God it will never fully prosper. It does not matter what industry you are in, the object should never solely hinge on making money. Business owners should make an effort to ensure that they are not only in the business to make money, but to also improve the quality of life and add value to society. We as Christians live our lives to serve God and praise the name of Jesus, therefore the business side should also reflect that. This means that every aspect of our lives should reflect our love for the Lord, whether it is in our personal lives or in business.
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