No. A sole proprietorship can’t elect or change to an S Corp directly. Instead, the owner will first have to form either an LLC or a C Corp before electing S Corp status with the Internal Revenue Service (IRS). To be taxed as an S Corp, a sole proprietor would need to
There are a few things that can be quite emotionally rewarding as seeing that business that had been just a sketch on paper for years morphing into reality. When your business gets very tangible in that you are almost fully set up, one of the most important decisions you ought to make at this point…
Just like we already know, a sole proprietorship has a single owner and the primary goal of this owner will always be to grow the value of the capital invested in the business which is also called Equity. Note that the key objective of maximization includes the maximization of net income given the current resources…
Yes, a family owned business can be started and managed as a sole proprietorship. This is perhaps the easiest and most common structure for brand new businesses. However, it may not work for all family businesses because it involves ownership and operation by a single individual, with zero separation between the business and owner. Sole…
Yes, you can have multiple DBAs under a sole proprietorship, but it will depend on your geographic location. Depending on the state you live or hope to run your business, a sole proprietor can have multiple DBAs for unrelated businesses under the umbrella of a single taxpayer identification number (TIN) or employer identification number (EIN)….
Setting up a business in the United States can be quite complex, depending on the business structure you decide on. Choosing a business structure and going through the mandatory steps to form your business entity is one of the first steps to doing business in the United States. Agreeably, state laws govern the formation and…
Do you want to change your business entity from partnership to sole proprietor? If YES, here are 11 steps on how to change partnership to sole proprietorship. It is not out of place to start your business as a partnership business whether general partnership or limited partnership, but there will come a time that the…
Do you want to transfer your sole proprietor business to someone else? If YES, here is a 6-step guide on how to transfer ownership of a sole proprietorship. We already know that sole proprietorship is the easiest type of business to form anywhere in the world. There is no separate legal entity formed when you…
Do you want to change your business entity from sole proprietor to S Corporation? If YES, here is 5-step guide on how to convert sole proprietorship to S Corp. For most new business owners, entrepreneurship is exciting, rewarding, and at times utterly confusing. From the very beginning, few people who wish to start a business…
Do you want to change your business entity from sole proprietor to LLC? If YES, here are 10 steps on how to change sole proprietorship to LLC in USA. It is not out of place to start your business as a Sole Proprietor, but you may need to change your business status from Sole Proprietorship…
Do you want to know the best legal structure for business? If YES, here is a comparison between a sole proprietorship vs LLC vs corporation vs partnership. Choosing a legal structure for your business is one of the first decisions you have to make when you want to start a new enterprise. You have the…
Why do some entrepreneurs choose the sole proprietorship type of entity and others do not? Is a sole proprietorship type of business entity right for me? What are the pros and cons of operating a sole proprietorship kind of business? If you have ever asked yourself any of such questions, then read on as I…