article · December 2011
Operating as a Sole Proprietorship or a Separate Legal Entity – What is Best?
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• If you wait until 2012, by the time the entity is filed and everything is in place, more than likely you will be operating as a schedule C for two to three weeks the beginning of the year. You are risking an audit! There is a $300 Billion Tax Gap and the #1 culprit is sole proprietors that file a schedule C! • Even if online companies tell you that your articles will be filed within 24 hours, you will NOT be ready to start business at that time! Bottom line; if they telling you the full story! Starting your business is NOT the same as having articles filed! • Secretary of State’s around the U.S. are becoming more and more overloaded with filings (mostly due to budget cuts)! This means, even if filing expedited, it can take much longer for your entity to get in place and for you to set up a bank account for any end of the year transactions.