General Product Information
- Annual Reports FAQs
- Apostille & Gold Seal Certification FAQs
- Benefit Corporation (B Corp) FAQs
- Business License FAQs
- Business Name Amendment FAQs
- Business Name Availability FAQs
- C Corporation FAQs
- Certificate of Good Standing FAQs
- Certified Copies of Documents FAQs
- Conversion FAQs
- Corporate Seal & Compliance Kit FAQs
- DBA (Doing Business As) FAQs
- Dissolution or withdrawal FAQs
- Due Diligence Services FAQs
- EIN (Employee Identification Number) FAQs
- Entity Managed Services FAQs
- Federal Motor Carrier Act FAQs
- Foreign Qualification FAQs
- Fundation FAQs
- Global Market Entity Identifier FAQs
- Global Transactional Services FAQs
- Good Standing Reinstatements FAQs
- Hcue Enterprise FAQs
- Independent Director FAQs
- Intellichart Automated System FAQs
- International Registered Agent FAQs
- Limited Liability Company (LLC) FAQs
- Limited Partnership (LP) FAQs
- Mergers and Acquisitions FAQs
- Name Reservation FAQs
- Nevada Legislation FAQs
- Nonprofit Corporation FAQs
- Other Articles of Amendments FAQs
- Ownership Certificate FAQs
- Professional Limited Liability FAQs
- Registered Agent FAQs
- Representation Services FAQs
- S-Corporation FAQs
- Service of Process (SOP) FAQs
- Service of Process Connector FAQs
- Service of Process Workspace FAQs
- Sole Proprietorship FAQs
- UCC Filings FAQs
- UCC Searches and Filings FAQs
- hCue Professional FAQs
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Are there any advantages to operating as a sole proprietor?One advantage is no initial paperwork and no ongoing state formalities, such as annual reports. However, since CT can mitigate the paperwork involved for LLC, C and S Corporations, this isn’t a significant advantage. From a tax perspective, you avoid double taxation—all business income, profits, losses, and expenses are reported on your personal tax return. However, the same is true of LLCs and S Corporations—without the risks of personal liability you constantly risk as a sole proprietor.
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Are there any requirements imposed on sole proprietors?Yes, most businesses need licensing and permits to operate—your business structure doesn’t change that. Additionally, you’ll want a business bank account to withstand scrutiny from IRS. To open one, many banks require a separate business name, which means you’ll need to file for “Doing Business As” (DBA) certificate.
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Trust CT Corporation to navigate compliance anywhere you do business.