sole proprietorship?

A sole proprietorship is a company or a person who decided not to take your business has a separate legal entity as a corporation, partnership or limited liability company. This type of business is not a separate unit. Each time a person usually provides payment services to sell things at a flea market or to any company whose primary objective is to obtain a benefit, that person is a sole proprietorship. If you take the business to make profits or income, the IRS requires that a separate Schedule C "Profit or loss from a business" file with your individual income tax year. Appendix C summarizes your income and expenses of a company.

As the owner of the sale of a business, you have unlimited liability means that if your company can not pay all debts, the creditors that the company owes you money can come after your personal belongings. Many part-time entrepreneurs can not know, but it's a huge financial risk. If you are sued or can not pay their bills, are personally liable for the debts of the company.

A sole proprietorship has no owner accounts, but the owner still has to prepare these statements about how your company is doing. Banks generally provide that the financial statements of individual companies seek loans. An association shall maintain capital or a separate account for each property of the members. The total profit of the company is to distribute these capital accounts, as specified in the partnership agreement. While individual traders have no capital to do separately from the retained earnings of the company, they still have to keep these two separate accounts for the owners of capital - continue not only for the activity but for the benefit of potential buyers of the company.