....the three basic legal forms are sole proprietorship, partnership, and corporation. The most common is the sole proprietorship. As its name implies, a sole proprietorship is owned by one individual. It is the oldest form of business, the easiest to start, and the least complicated to dissolve. Here are some of the advantages of
this business form:
1. You own all the profits.
2. Your business is easy and cheap to organize. You don't need any government
approval, although you may be required to carry a city, state or county license.
Your only other obligation is to notify the Internal revenue Service (IRS) for
the purposes of sales tax.
3. You're the boss.
4. You enjoy certain tax savings. You must pay regular individual taxes on your
income, property, and payroll, but these are not levied as special taxes, as
with a corporation. You will also have to pay sales tax which you have received
from your customers.
5. Greater personal incentive and satisfaction. Since you have your investment
to lose if your business is not successful, you should be more willing to put
time, thought, and energy into the business. And when your business is
successful, you enjoy maximum sense of accomplishment since you know its success
was dependent upon your decisions about your management ability alone. For more
information about this and other forms of business....