Sole Props...the good and the bad
Mike Henninger • April 22, 2024
Sole Props...the good and the bad...
What are Sole Proprietorships?
What are the key characteristics of a Sole Proprietorship?
- Simple to Create: Starting a sole proprietorship is straightforward with minimal paperwork. Often the only requirement is a business license depending on the type of business and location.
- Control: The owner has full control over all decisions related to the business.
- Tax Benefits: Aside from possibly converting some personal expenses to business expenses, there are none. In fact, sole props (and SMLLC's - next article) have some pretty awful tax outcomes due to self-employment taxes, we'll get into that in a future article. The business is not taxed separately and there are no separate tax returns that need to be filed. Instead, the profits and losses of the business are reported on "Schedule C, Profit or Loss from Business" and is included with the owner's personal income tax return (Form 1040), potentially simplifying the tax filing process.
91% of small businesses are being ignored by the Fractional CFO industry, not anymore...
"Profitable on Paper… Broke in Reality?"
The Triad Blueprint: Build - Grow - Exit
Are you planning an exit?
Setting up your Real Estate Syndication/Fund for Success
Why margins matter...
Here are 5 crucial areas a small business owner needs to handle in order to grow their business:
A Fractional CFO can increase the value of your business...
Auto Deduction: Actual vs Mileage
Why managing expenses is so important and how a Fractional CFO can help