The BIGGEST Reason to start a sole proprietorship as an Immigrant with an ITIN, EIN, SSN
Looking to start your own business? A sole proprietorship may be the perfect fit.
What is a Sole Proprietorship? A sole proprietorship is a type of business structure for any business that is started by an individual person. Having a sole proprietorship means you and your business have a shared identity, so the business isn’t a separate legal entity. It is the cheapest and easiest form of business that doesn't require permission from the government.
What are the advantages of a sole proprietorship?
Many businesses start out as sole proprietorships, and there’s a good reason to do so: A sole proprietorship is very simple and inexpensive to process. In contrast to other business structures, the owner reports their profits or losses as part of their own tax returns.
Is this the right business structure for me?
If you need to prove that your business will work, then a sole proprietorship is perfect for you because it's very cheap to get started, you don't have to register your business with the state, and there aren't many formal steps. However, if you make over $5k in revenue, it is recommended that you look into setting up an LLC or a C-Corporation.
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Reference: NOLO Working for yourself Book