McCormick Braun Friman Corporate Law Sole Proprietorship Corporations

Home | About | Practice Areas | Blog | Contact

Additional Information

Business Law

Sole Proprietorship

Partnerships

Corporation

Limited Liability Company

Entrepreneur Fund Raising

Sole Proprietorship

A sole proprietor is an individual person who operates a business in his or her own name or under an assumed name. The person’s own social security number serves as the tax identification number of the business, and the individual simply reports the business’ income on his or her personal return. The sole proprietor pays quarterly estimated taxes, as opposed to filing more complicated payroll tax returns and withholding periodic taxes from money earned.

The main advantage of this business entity is efficiency and cost. Obviously, the cost and organizational time are minimal. The main disadvantage of the business organization is lack of liability protection. Any problems that arise in this business will pass directly to the owner personally, without the ability to insulate personal assets from liability issues. There are also important tax matters that would come more prominently into play as the business develops.

The material and information contained in McCormick Braun Friman, LLC, website, operating under the domain name: www.mbflegal.com is provided solely for general informational purposes. The contents of this site should not be construed as legal advice on any subject matter and is not a substitute for legal advice on any subject matter. No recipient of content from this site, client, whether current or otherwise, should act or refrain from acting based on information at this site. McCormick Braun Friman, LLC expressly disclaims all liability in respect to actions taken or not taken based on any or all of the contents of this site. Note: Nothing in this website creates or establishes an attorney-client relationship. An attorney-client relationship can only be created or established by a written agreement signed both by client and attorney.