Flashcards in SOLE PROPRIETORSHIP Deck (2)
(Know the requirements, advantages, disadvantages)
Requirements: Name of business and location, company stationery (letterheads), legal and financial consequence, level of risks owners want to take
Advantage: total management by the owner, possible tax adv. with business expenses being deducted from income business.
Disadvantage: owner is liable for company's debt, being sued means owner's income, property an other assets can e seized
Taxes - No Seperate federal tax return filed or taxed incurrred
- File schedule C (Form 1040)-Profit and losses from sole proprietoriship every business