Starting a Business
There are many different legal structures that a business can opt to incorporate under. However, there is no option that fits every company, making which structure you choose entirely dependent on what type business you are launching and what best fits your model.
One option, sole proprietorship, means that the entire operation functions under one person. It is the most simple of all the legal structures to set up, as no legal formation documents come with a sole proprietorship. Additionally, all profits or losses are reported to the IRS directly on your personal income tax return, and you are responsible for all business decisions.
Filing taxes for a sole proprietorship is simple, as well - you need only fill out a Schedule C form, which often only requires you to list your revenue and expenses. In addition, if you choose to hire your children, you will not be required to pay any payroll taxes.
You may also operate a sole proprietorship under your name or under a business name. One major downfall of operating as a sole proprietorship? If anything happens, you're held entirely responsible for all of the risk.
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