Sole Proprietorships

Ofter a small business owner will choose to run the business in his or her own name without the benefit of a business organization. A sole proprietorship is a business owned and managed by one individual, who is personally liable for all business debts and obligations and beneficiary of all its profits. For federal income tax purposes, the owner and the business are one taxable entity. Therefore, the owner reports the profits and losses of the business on Schedule C of form 1040, the individual federal income tax return. This eliminates the need to file federal and state income tax returns for a business organization such as a corporation or limited liability company. Since the owner of a sole proprietorship is personally liable for the debts of the business and also liable for the acts of any employees of the business, it is most often not advisable to carry on a business as a sole proprietorship. Other business entity options include business corporations, professional corporations, limited partnerships and limited liability companies. The entity of choice for Connecticut small business is the limited liability company which gives a small business the advantage of limited liability with simpler tax reporting requirements. Attorney Rubino is experienced in the operation of sole proprietorships and other Connecticut business organizations and can guide the operation of your business in order to protect your interests and allow your business to grow.