Business Lawyers in Columbus, Ohio
By Andrew D. Randol - October 4, 2019 - Startups + VC
When we say “alone,” we don’t mean it’s just you behind the counter or screen as the sole employee of your own company. We mean alone, as a sole proprietorship business owner.
There are many reasons why people start their own businesses with no partners or limited liability partnerships. First, some business owners prefer to be the only one calling the shots and making the decisions, as a partner or multiple partners can slow down decision-making when too many cooks are in the kitchen, so to speak.
Here are the top four reasons why you should start your business alone as a sole proprietorship, explained by Stevens Randol, the offices of respected business lawyers in Columbus, Ohio:
As stated above, with sole proprietorship, the business owner has complete control over decisions, finances, development, and more. There’s no board of directors, shareholders, business partners, or other owners to answer to. If it’s time to dissolve the business or pass it on to a trusted employee, friend, or family member, there’s no one stopping you.
Sole proprietorship income taxes are easier to file under Schedule C. Furthermore, operating as a sole proprietorship means that you can use business losses to offset personal income sources, like a spouse’s salary.
It is important that you do not go head-to-head with the IRS under their “hobby” business restrictions. Use the help of a business lawyer in Columbus, Ohio to understand how to prove your business as legitimate and not a hobby to avoid higher taxes.
Sole proprietorships are relatively simple to set up and register compared to LLCs or other multi-owner businesses. A person becomes a sole proprietor simply by running a business themselves and will only have to register where they conduct business.
Depending on the business structure, the sole business owner has no obligation to disclose certain documents or reports with certain other parties regarding finances, scope, or any other business-related metrics. On the other hand, LLCs and corporations can be required by law to hold meetings for members or shareholders and file certain reports with different government departments.
When you’re ready to start your business as a sole proprietor — or even under an LLC or corporation — be sure to have a trusted and experienced business lawyer in Columbus, Ohio, to help you correctly and legally set up your sole proprietorship. Contact Stevens Randol today for a business lawyer in Columbus, Ohio with whom to consult.