Home-based business legal formation
Is it okay to be a sole proprietorship as a home-based business owner?
Yes; many home-based businesses are structured legally as sole-proprietors. But it may not be the best legal form for your business.
A sole proprietorship the simplest structure to form, because at the moment of conception, all businesses are sole proprietorships. Just remember that as long as you have not incorporated, your personal estate is vulnerable to legal actions against your business.
There are only two reasons not to incorporate: 1) The cost, and 2) The difficulty, neither of which really outweigh all of the advantages.
Brain Trust contributor:
Related Categories: Business Planning, Business Start Up, Business Structure, Entrepreneurship, Home-Based Business
© 2007, Small Business Network, Inc., All Rights Reserved.
AskJim ID: 1135