This situation is familiar to most. In the beginning, you are full of enthusiasm and ready to conquer the whole world, but after a while, you realize that procrastination and daily routine buried your unique project under a pile of other urgent matters. An idea is very important, but it will stay just the idea if the consistency and regularity of the necessary actions for its implementation are not applied to it.
A sole proprietorship is a business operated by an individual owner. It is the most common business structure and the easiest to establish. In the case of a sole proprietorship, you will have to report all your business income or losses on your personal income tax return, but the business itself will not be taxed separately. Because the sole proprietor business is not separate from the owner.
Whether you just have been started working for yourself or are just thinking about your business, one of the first tasks you have to solve is to decide on the form of ownership of the company. Your company’s form will affect: how you are taxed, your legal liability, costs of formation, operational costs.