But what if instead of a perpetual sole proprietorship, your dream is an empire?
He runs his consulting business as a sole proprietorship paying self-employment tax on the whole profit.
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Of course, forming an LLC is not quite as easy as a sole proprietorship or partnership.
If your money-losing sole proprietorship is really just a hobby, treat it as such.
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The company was founded in 1995 as a sole proprietorship by Paul Kinuthia, a relatively unknown Kenyan businessman.
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Assume you own an interest in an S corporation, partnership, or sole proprietorship.
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Much of Murdoch's initial renown stemmed from his proprietorship of flashy tabloids like the New York Post and Britain's The Sun.
Broker entrepreneurs have a choice of five possible legal structures: sole proprietorship, partnership, limited liability company, S corporation or C corporation.
There are many old wives tales about what triggers an audit: home office deductions, passive losses, schedule C (sole proprietorship) activities, etc.
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You have five basic choices: a sole proprietorship, a partnership, a limited liability company or a corporation--either an S corporation or a C corporation.
One could make a convincing argument that in the industrial age, the company (whether multinational corporation, limited liability company, or sole proprietorship) has been the oikos.
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Also like a sole proprietorship, a general partnership doesn't protect against personal liability and in addition, partners are held responsible for the actions of the other partners.
An LLC can also be suitable for the single owner who wants the liability coverage of a corporation but the more simplified tax treatment and operational freedom of a sole proprietorship.
As you will see in the subsequent posts, materially participating in an activity, whether it be an S corporation, partnership or sole proprietorship, is a prerequisite to excluding any income from net investment income.
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If you decide to set up a for-profit entity, you have five basic choices: a sole proprietorship, a partnership, a limited liability company or a corporation--either an S corporation or a C corporation.
Self-employment activity generally includes ownership and operation of a sole proprietorship, Limited Liability Company (LLC), C Corporation, S Corporation, and Limited Partnership where the business intends to generate revenue for profit and make significant contributions to the plan.
Assume further that interest and dividends are earned in the activity and are either allocated to you on a Schedule K-1 (in the case of an S corporation or partnership) or reported by you on Schedule C (in the case of a sole proprietorship).
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