Hello,I m trying to also open up a small @ home based business. I came across this info and thought it might be helpful to you. I still find myself very confused as of to which direction I should go. For me a Sole Prop. Is the way to go. What frightens me is the tax s. (I too live in Florida)Sole Proprietorship A sole proprietorship also known as a sole trader, or simply proprietorship is a type of business entity which is owned and run by one individual and where there is no legal distinction between the owner and the business. All profits and all losses accrue to the owner (subject to taxation). All assets of the business are owned by the proprietor and all debts of the business are their debts and they must pay them from their personal resources. This means that the owner has unlimited liability. It is a sole proprietorship in the sense that the owner has no partners (partnership).A sole proprietor may do business with a trade name other than his or her legal name. This also allows the proprietor to open a business account with banking institutions.AdvantagesThe main advantages of a sole proprietorship are that they are easy to start up, they are subject to fewer regulations relative to other types of businesses, the owner has full autonomy with regard to business decisions, and they are easy to discontinue. [1] Another advantage is that one takes all the profits of the business. This is the main reason that most businesses are of this type. A sole proprietorship is not a corporation; it does not pay corporate taxes, but rather the person who organized the business pays self employment taxes on the profits made, making accounting much simpler. A sole proprietorship also does not have to be concerned with double taxation, as a corporate entity would. A sole proprietor usually has a quick decision process and doesn t have any opposition when making a decision as he or she has total control of his business. All profits and losses accrue to the owner. The owner does not have the tension regarding conflicts among the partners as there are no partners. Also its easy to set, with having little paper work to fill in and little money spent on setting up this is one of the easiest types of business to start.DisadvantagesA business organized as a sole trader will likely have a hard time raising capital since he has to make up for all the business s funds. The owner of the business has unlimited liability as he is responsible for the business s debts because he has control over the business.A disadvantage of a sole proprietorship is that as a business becomes successful, the risks accompanying the business tend to grow. To minimize those risks, a sole proprietor has the option of forming a corporation, or, more recently, a Limited Liability Company.What is a fictitious name? A fictitious name means any name under which a person transacts business in this state, other than his legal name. Business means any enterprise or venture in which a person sells, buys, exchanges, barters, deals, or represents the dealing in any thing or article of value, or renders services for compensation. Legal name means a person s given name, or an entity that has been properly registered. Examples: trademarks, service marks, corporations, limited partnerships.So I m assuming that BOTH will be needed? Sole Prop and Fictitious name would have to be registered?
I always recommend incorporating an LLC or S-Corp for tax and other reasons. It costs a little but the benefits are huge. It also allows your business to grow and take on partners, investors, or employees whenever it s needed. Your personal assets are also somewhat protected. For a sole prop, you end up paying more taxes, and if your company gets sued, everything you have ends up being vulnerable.
you will find the best answer for you on legalzoom.com honestly but i would recommend incorporating your business less liability or use a dba
