Doing Business as a Sole Proprietor

Starting a new business requires making difficult decisions and often without little guide such as deciding on the structure of a new business. LLC is widely used as a business structure by new business owners. But, do you really need to form a LLC to start a new business? The answer may surprise many; no, the formation of a LLC is not required to start a new business.

In fact, if you are just starting out and building your business from the ground up, forming a LLC may add more expenses and raise your tax liabilities. For instance, in California, a LLC must pay $800 franchise tax per year even if the LLC is not engaging in any business. Many small businesses travel the cost-effective route and launch their business as a sole proprietor. Sole Proprietorship requires little paperwork and are easy to form. For a new business owner with little capital on hand, launching the business as a sole proprietor may be the best option to launch and build customer base.

Singh Tax Services can help you decide if Sole Proprietorship is the best option for your new business. For a free consultation, questions or inquiries, please contact Singh Tax Services at (661) 599-8884 or email us at singhtaxcenter@gmail.com.

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