Incorporation Session 7 - The Sole Proprietorship
This session goes into detail about a sole proprietorship. What is a sole proprietorship, how this form of business is taxed and the advantages of being a sole proprietorship. Kevin also discusses the downsides and disadvantages of this entity type. Kevin compares this form of business to others on key characteristics, such as taxation, liability protection, income splitting and credibility.
Kevin discusses the IRS and how it views the various entity types. This portion discusses tax audit statistics and how an incorporated business structure lowers your exposure to a financial review from the IRS. Sole Proprietorships are not separate legal entities and the income is taxed at the individual's level through Schedule C income, which is where the high audit statistics come from. Each of the characteristics of this form of business is explained.
Inside This Session
- Definition of a Sole Proprietorship
- How a Sole Proprietorship is taxed
- Description of Sole Proprietorships
- IRS facts and statistics with regard to this form of business
