Here at PPG Consulting Services, we like to inform our prospective clients on the risk of running your business as a sole proprietorship.
We live in a very litigious society The risk you take is losing every thing that you have worked for. The benefits of a corporation or a Limited Liability Company is the reason business owners work and conduct business under a corporate veil.
A sole proprietorship is a one-person business that is not registered with the state as a
corporation or a limited liability company (LLC). Sole proprietorships are easy to set up and maintain. You may already own one without knowing it. For instance, if you are a freelance photographer or writer, a craftsperson who takes jobs on a contract basis, a salesperson who receives only commissions, or an independent contractor who isn't on an employer's regular payroll, you are automatically a sole proprietor. Even though a sole proprietorship is the simplest of business structures, you shouldn't fall asleep at the wheel.
- Your Personal Estate has a huge liability in the event of a lawsuit.
- You may have to comply with local registration, business license, or permit laws to make your business legitimate.
- You are personally responsible for paying both income taxes and business debts.
- Personal liability for business debts - a sole proprietor can be held personally liable for any business-related obligation. This means that if your business doesn't pay a supplier, defaults on a debt, or loses a lawsuit, the creditor can legally come after your house or other possessions, simply put, your PERSONAL ESTATE.
- You could lose everything you have worked for all your life.
|
Sole Proprietorship 