Everything You Need to Know about Sole Proprietors and Sole Proprietorship

1. What is a Sole Proprietor/Sole Proprietorship?

A sole proprietor is a solo business owner; the business he or she owns is a sole proprietorship. A sole proprietorship is unincorporated, and is not a partner or shareholder.

2. Sole Proprietorship vs. Partnership, LLC, Corporation

Saying that a sole proprietorship is "unincorporated" makes sense, but there is more to the sole proprietorship than that. A sole proprietorship is also not a partnership or a limited liability company. Comparing these forms may help lessen the confusion about the various business types. This article compares a sole proprietorship to a partnership, LLC, and corporation, in relation to the business owner, his/her control and liability and status.

3. Steps in Starting a Sole Proprietorship

A sole proprietorship is the easiest form of business to start. The steps for starting a sole proprietorship business are laid out in this article.

4. Advantages and Disadvantages of the Sole Proprietorship

Do the benefits of starting your business as a sole proprietorship outweigh the disadvantages? Read about the advantages and disadvantages so you can make an informed decision.

5. All the Taxes Paid by a Sole Proprietorship

Sole proprietorship businesses must pay taxes in the same manner as other businesses: income tax, sales tax, property tax, and others. And don't forget self-employment taxes (Social Security/Medicare). These taxes are explained in detail in this article.

6. How a Sole Proprietorship Pays Income Tax

A sole proprietorship pays income taxes by completing a Schedule C and including this income on the owner's personal tax return. Get the specifics of filing income tax for a sole proprietorship here.