LAW /531T Wk 2 Discussion – Sole Proprietorship Benefits and Risks

Wanted to comment on a couple things that I have been seeing on a lot of posts:

Several people have mentioned how a big pro for a Sole Proprietorship is that the owner gets to have total control of the business, but it is important to note that this can also be the case in other entity forms as well. A single member LLC is also an entity that is controlled by a single person (not surprising with that name) and a Corporation can also have a sole stockholder.

It has also been mentioned that a Sole Proprietorship has tax benefits because you are not subject to double taxation, but as discussed in a buried comment thread, if you have a single member LLC the IRS considers it a disregarded entity for tax purposes which means you are able to ignore the corporate form for tax reasons and report the income on your personal tax return. This allows you to be able to deduct the business expenses as well, which is a big benefit.

I know a lot of this can be “technical” but details like these are great reasons to look that this if you are thinking about opening up your own busines