Sole Proprietorship for Dummies (What is a Sole Proprietorship and How Do I Start One?)

Рет қаралды 22,133

Күн бұрын

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In today's video, I go over everything you need to know about sole proprietorships, so if you're a new business owner wondering what the difference is between a sole prop vs something like an LLC or S Corp, then this video is for you.
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A sole proprietorship is a type of business structure in which an individual owns and operates a business on their own, without any formal legal separation between themselves and the business. This means that the individual is personally responsible for all the debts and obligations of the business, and they also have complete control over all business decisions and operations. This type of business is simple to set up and operate, and it is often used by new small businesses, freelancers, and self-employed individuals.
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Be sure to watch until the end of the video because I'll go over a bunch of things such as the pros and cons of having a sole proprietorship, access to funding, and other potential drawbacks to operating as a sole proprietorship. Although a sole proprietorship has its limits, they can be an attractive option for those who want to get started with business right away without needing a proper business entity set up.
If you found this video helpful, check out our other videos about business formation:
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• How to Set Up an S Cor...
How to Set Up an S Corp Step-By-Step for FREE (2024 Guide):
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Thanks for watching! I hope you have a wonderful day!
-Charlie
#SoleProprietorship #Business #Entrepreneur
Timeline:
0:00 - Intro
0:52 - What Is A Sole Proprietorship?
1:45 - Types Of Sole Proprietors
2:06 - How Does A Sole Proprietorship Work?
2:40 - How To Set Up Your Sole Proprietorship
2:55 - Step #1
3:38 - Step #2
4:26 - Step #3
5:04 - Step #4
5:22 - Step #5
5:35 - Step #6
6:12 - Step #7
6:50 - Step #8
7:59 - Step #9
8:07 - Step #10
8:29 - Step #11
9:27 - Different Types Of Taxes You'll Need To Pay As A Sole Proprietor
9:52 - Record-keeping For Your Sole Proprietorship
10:14 - Pros And Cons Of Having A Sole Proprietorship
11:47 - Important Things To Consider
13:29 - Final Thoughts
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In addition, we are not a financial advisors. StartupWise does not provide tax, legal or accounting advice. The ideas presented in this video are for entertainment purposes only. Please do your own due diligence before making any financial decisions.

Пікірлер: 30

@kellyxiong8476 3 ай бұрын

Gosh, thank you! Straight forward and to the point! I appreciate you.

@kylepizzichili5959 5 ай бұрын

Great breakdown and explanations!

@AnomalyBelleza 6 ай бұрын

Thank you. I needed this.

@Mike0193Azul 5 ай бұрын

Thank you very much for the explanations! Very organized. Did not find the links in description though.

@cheriemendez4292 Ай бұрын

Thank you so much! This helps tremendously!

@nelsis.3967 3 ай бұрын

Awesome content!! Thank you so much :) This video needs more likes!!

@KillRoy0351 4 ай бұрын

Great stuff

@jonathan_brutus Жыл бұрын

Great! breakdown and informative. I'm a freelance graphic designer and I was thinking about registering as a sole proprietorship, but I haven't generated much income so far yet. Also, I read that you do not need to register a sole proprietorship in Florida however, my question, is it still best to register as a sole proprietorship?

@angrageous 5 ай бұрын

Hi there, was looking for the link for Novo in your description, but I'm not seeing it. I know I can just go to the website, but I thought maybe you had an affiliate link, so I wanted to check here first!

@ReneeGriego Ай бұрын

Thank you

@pyramidetrader 3 ай бұрын

thanks

@abelgonzalez75 5 ай бұрын

thank you for the information !! I just recently opened up my own Barbershop , and I dont know what to do . Do I need to get Self Proprietorship or an LLC ?

@industrlbeatnik 3 ай бұрын

You would probably want to open an LLC strictly so you can protect your personal self from the business should anything happen

@StartupWise Жыл бұрын

Hope you guys enjoy the video and get a ton of value from it! Below are useful links to getting started in your business: Get started with your domain name and website with Wix: startupwise.com/wix Start any business entity with Bizee (previously IncFile): startupwise.com/bizee ^ Bizee is the new and improved IncFile - they're the same company and still provide the same services, but with a new name. Open a business bank account with Novo: www.novo.co/ Track your business finances using Quickbooks: quickbooks.grsm.io/charleschang6531

@ChinoFeo-fb9ui 2 ай бұрын

Thank you so much! This really helped me alot. I appreciate it.

@maureenthompson8845 4 ай бұрын

Can you get in trouble for being a sole proprietor and forgetting to update your license with your name? I have always paid my taxes.

@maureenthompson8845 2 ай бұрын

I got it taken care of right away with the State of Mn. No problem. They were fast and efficient:)

@gunsandcafe Ай бұрын

What would your recommendation be for a coffee dropshipper?

@sayeedaa.r.1601 5 ай бұрын

Hi Is this for Canada or in US

@ww3soulja 2 күн бұрын

why would you need a DBA if you file your taxes using your own social security number? even though the name may be different you are the business

@yubanihernandezmiranda9252 4 ай бұрын

I formed an LLC but by default I will be taxed as a sole proprietor ... is that correct?

@chrismontello2233 2 ай бұрын

I have a job plus a sole proprietorship. I was told that if I claim my business expense on my 1040 and I dont show a profit for at least 2 years out of the first 5 years the irs will try to recover any money saved on my 1040 by claiming the business expenses plus pertly. Is this true?

@camidonahue8882 2 ай бұрын

When you started your KZfaq channel, did you register under an LLC or Sole Proprietorship?

@dannyrs8437 Ай бұрын

I’m planing to open my Landscaping do I still need to get a EIN, I’m getting the DBA just because im using my middle name and being as a Solo proprietorship, is it necessary the EIN, thank you…

@jennilinburge7653 2 ай бұрын

Have a sole proprietor on my cellphone repair store no employees and o used money from my account to buy a boba tea shop how do I report this for tax deduction from the cellphone side