Beyond the Sole Proprietorship. Home Office Computing

Hawkins, Carole C., (2001, March). Beyond the Sole Proprietorship. Home Office Computing, v19 i3 p68. Retrieved October 03, 2002, from INFOTRAC database on the area Wide Web: http://web4.infotrac.galegroup.com/itw/session/

The author examines touch on proprietors and operators of home plate based business sectores and attempts to find out whether they should continue as sole proprietorships, incorporate, or radiation diagram a partnership.

The author suggests that home businesses should always consult with a lawyer prior to fashioning any decisions. Some of the advantages of sole proprietorships are that they are aristocratic and relatively inexpensive to start up and the owners are fit to report their losses on personal income taxes. However, the downside to operating a sole proprietorship is the owner has unlimited liability and fire be held personally responsible for all business debts. Also, sole proprietors often have trouble raising capital, which is necessary for enlargement and growth of a business.

According to 1997 figures posted by the IRS, sole proprietorships correspond 75 percent of the approximate 24 million businesses in the United States. Anyone who works for himself or herself would be considered a sole proprietor once they choose a business evoke and obtain a business license.

According to Kerry Branch, who is a specialist in business and corporate law, theres no fixed point at which a home-based business owner should incorporate or form some type of entity to hold the business. Choosing to incorporate depends mainly on ones long-range business plans. Whatever route a business owner chooses to take is not written in stone, ever-changing to another structure if liabilities increase is possible.

The author observes the pros and cons of a symmetric corporation, limited liability company and general partnership and compares/contrasts them with the pros and cons of sole proprietorships. The authors research seems to correlate with the statements made by Mr.

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