The Learning Annex Present Small Business Basics
Chapter One
business organization
If you have a great idea for a product or a business and are eager to get
started, do not let your enthusiasm be the reason you get off on the
wrong foot. Take a while to consider how you will organize your business.
The form of organization your business takes controls how income
and deductions are reported to the government on a tax return. Sometimes
you have a choice of the type of business organization; other
times circumstances limit your choice. If you have not yet set up your
business and do have a choice, this discussion will influence your decision
on business organization. If you have already set up your business,
you may want to consider changing to another form of organization.
For a further discussion on worker classification, see IRS Publication
15-A, Employer's Supplemental Tax Guide.
SOLE PROPRIETORSHIPS
If you go into business for yourself and do not have any partners, you
are considered a sole proprietor. You may think that the term proprietor
connotes a storekeeper. For purposes of tax treatment, proprietor means
any unincorporated business owned entirely by one per ... read full excerpt from The Learning Annex Presents Small Business Basics: Your Complete Guide to a Better Bottom Line ebook
