Sole Proprietorship (What's the Advantage?)

Should you set up your business as a sole proprietor? Sole proprietorships are highly favored by entrepreneurs because of how easy and cost-effective they are to set up. However, they are also more vulnerable to being sued as your business is entirely in your name.

These tips from Toby are important when deciding how to operate your business. Although it may be easy to set up, it's rarely the best choice.

🚀 Ready To Take Your Business To The Next Level & Get A Detailed Risk Assessment To Help Protect Your Personal and Business Assets From Lawsuits?

---------------------------------------------------------------------------------------------------------
SUBSCRIBE

~~~~

FREE REAL ESTATE INVESTMENT STRATEGY SESSION

FREE TAX & ASSET PROTECTION WORKSHOP

TAX TUESDAY LIVE

OTHER ANDERSON ADVISOR EVENTS

Learn a rich selection of subjects like tax and asset protection, business, investing, and much more. Our partners, attorneys, and other skilled experts will help you learn what you need to know in order to better your chances of success in your professional life.

~~~~

FINANCIAL PLANNING & TAX RESOURCES

~~~~

FOLLOW US:

~~~~

CONTACT US
Phone: [phone]
Fax: [phone]

ABOUT TOBY MATHIS

---------------------------------------------------------------------------------------------------------
The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice. of the information contained herein without seeking professional legal advice.

#soleproprietorship

[MirahLov]

Those who looking for Sole proprietorship I recommend you watch Hawthorn Law: Why a sole proprietor might be a shrewd business move. There he is not just talking about people with a whole bunch of money he actually talking about people with little to no money at all.

[MirahLov]

It’s not about easy taxes as a sole proprietor. People just starting off everybody don’t start out with thousands and thousands of dollars you can’t tell someone who’s living paycheck to paycheck to jump in head first to get a LLC that’s the most stupidest thing to do because now not only are your paying $100+ to form a LLC your paying even more for other documents you need to legalize it. On top of that you need to hire a Accountant/CPA your paying more than your earning and you haven’t even made sells yet. Who to say your going to start making sales right away. But sure enough that money to form a LLC is coming out of your pockets right away. Every year you will have to pay for your LLC regardless if your making sales or not you are still responsible for that fee. Start off little then work up to big.

[pacmankells]

I like this guy. He's straight to the point and keeps it blunt with you.

[forerunner]

Everyone always mentions the fear of being sued on SP as oppose to LLC keeping people in fear by not stepping out and start small with limited finances.. SP seems to be the best option if you are financially limited and are starting small without employees.. hence, sole proprietor. LLC can come later when you have made profits over $60-$70k.. Until you are ready to pay out and expensive LLC, etc.. Don't discount starting small and opening up your business as SP... It's a risk, like anything, but so is LLC.

[janth]

This will be my second year in business, and I haven't consulted with a lawyer yet... but I now feel like I might be missing out on important advice. Thanks for this video.

[yazelz]

I wonder why some useless videos have millions of views, and video like this have hundreds views. I believe you should be the top you-tuber, learned from you a lottt!! Thank you

[MirahLov]

You can’t tell a client that they should not form a Sole proprietor especially if they don’t have the income to keep up with the LLC. If the sole proprietor rent/have car notes no money whatsoever how can they be sued! They don’t have nothing. When your business grows then you should go ahead get a LLC. But some people don’t have the funds to even keep a LLC. up to $800 a year!

[pollypocket]

Sole Proprietors do not pay taxes on the revenue the Sole Prop earns or the income reported on the 1099. Instead, Revenue Earned Minus Expense Deductions=Taxable Income on Schedule C❤ Solo 401k is a tax haven for the sole props! Once your business income is growing over 30k then it’s time to change the entity for tax savings to S Corp or C Corp. Real Estate should be registered as an LLC. This is not financial advice.

[boahandarrowsproductions]

I thank you very much for the clarity. Have a great day.

[fido]

Super clear, informative, and convincing. Thanks for the advice.

[mauriciocondo]

I am starting a small business as a sole proprietor because at the time of filing the forms with the IRS all the business type options was the closest to the type of business I was a sole proprietor, but I just found out that it is a bad idea to start a business like this, how can I change to LLC or another type of business that is ideal for mine, my business is a food truck
Thank you

[shaneikiyasteel]

Would an EIN and a business checking help to ensure that my business and I are separate? As they can see where my money is going and I am not using my SSN? Also, I plan to speak with a lawyer and get a contract put in place to solidify this as well.

[vhgxnif]

i kept waiting for him to try and sell something but he never did.... i kept thinking all this information was too good to be true but i am pleasantly surprised

[lunamorris]

Excellent videos!
Thank you very much for your hard work.

[jkrystal]

that PPP comment was a lie, I got both rounds and my business is a sole proprietorship.

[DairangerSentai]

Have a parent company for your business. Registering as a sole proprietor is easy to file taxes, but puts you at a greater risk of losing a lot if you get sued.

Tax benefit, legal separation of the entity and individual,
Ability to get access to capital
Becomes harder if someone has difficulty distinguishing to you and your business apart. They fear you taking it personally.
Access to loans (you can't partner with a sole proprietor or get investments)
LLC, taxed as an s-corp.

What's an S-corp and C-corp?
Find an accountant who knows the differences, benefits and disadvantages of the corps.

[gibble]

I have an older brother making good 6 figures. However he seems to be getting taxed a lot. In one day of work he gets taxed over 50% of his pay. What can he do to pay less in taxes?

[mindxpansion]

If you have trust set up properly you will be fine and if trust owns the sole prop you will be fine

[euvwmis]

Can someone please tell me about the negative side of individual proprietorship

[temiymahs_World]

What if I do consulting or sell digital products but I’m currently making 0. Should I still start an LLC or Scorp? Starting with nothing