Sole Proprietorship
The default option is to be a sole proprietor. With this option there are fewer forms to file than with other business organizations. The business is structured in such a manner that legal documents are not required to determine how profit-sharing from business operations will be allocated.
This structure is acceptable if you are the business's sole owner and you do not need to distinguish the business from yourself. Being a sole proprietor does not preclude you from using a business name that is different from your own name, however. In a sole proprietorship all profits, losses, assets and liabilities are the direct and sole responsibility of the owner. Also, the sole proprietor will pay self-employment tax on his or her income.
Read more: Forms Of Business Organization - Complete Guide To Corporate Finance | Investopedia http://www.investopedia.com/walkthrough/corporate-finance/1/forms-business-organizations.aspx#ixzz409YNtuLg
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