A sole proprietorship is an unincorporated business that is owned by one individual. It is the simplest form of business organization to start and maintain. The business has no existence apart from you, the owner. Its liabilities are your personal liabilities. You undertake the risks of the business for all assets owned, whether used in the business or personally owned. You include the income and expenses of the business on your own tax return.

If you are a sole proprietor then you may be liable for:

• Income tax
• Self-employment tax
• Estimated tax
• Employment taxes
• Excise taxes

| Author: Krasen Tyutyunev |