A sole proprietorship, sometimes called a sole proprietorship, sole trading company or sole entrepreneur, is simply a kind of business owned and operated by you and where there is no actual legal separation between your business entity and you the owner. You are actually just another individual acting in an entrepreneurial role. But what are the pros of becoming a sole proprietor? And are there any cons? For the most part, sole proprietors enjoy high credit scores because they do not have an overall debt level. Because they are solely responsible for their business expenses, they do not have to worry about their personal assets like cars or houses getting behind. Another advantage of this kind of business structure is that your personal debts such as credit cards, personal loans, payday loans, etc. are kept as private personal debts. This means that if you were sued due to these debts, the sole proprietorship will not be responsible and that's a huge plus especially when dealing with creditors and debt collection agencies. One other from of being a sole proprietor or Schedule C owner is that you don't have to pay the IRS any form 1040 federal tax payments. This is because you are not considered a corporation or a partnership for filing federal tax returns. That means you don't have to file a Schedule C, therefore there's no need to pay the social security number form 1040 either. This alone can make this form a great money saver. Make sure to check out this website at https://www.huffpost.com/entry/mary-donald-trump-tell-all-book-lawsuit_n_5ef5192cc5b6ca97090d0423 for more details about NDA. What are some of the cons? When operating a sole proprietorship or Schedule C, there are still chances that you'll get sued because you are not legally recognized as an entity by the state you live in. The only way to make sure the state recognizes your sole business is to file an application with the legal entity identification board of the state where you will do business. Be sure to view here for more details! In addition to that, operating a sole proprietorship or as a Schedule C, an LLC, or a limited liability entity is not very tax effective. This is because the limited liability entity form does not allow the owners of the entities to personally escape liability for liabilities. In other words, you may never personally pay off the taxes you owe to the government if you own your business. If you are thinking about starting a sole proprietorship or doing business as an LLC or some other type of limited liability entity, there are many things to consider first including the pros and cons of each. You should also take into account your ability to become personally financially free while being legally separated from your personal liability liabilities. Many people end up being sued when they can't keep both their day-to-day personal finances separate from their business finances. When being sued, you won't have the funds to defend yourself and lose everything you built if you don't personally preserve your assets. Be sure to see page here!