Business Entity – Pros and Cons

Business Entity Pros and Cons Sole Proprietorship Pros • No formal creation process.• Easy to operate and dissolve.• No separate tax return.• Easy to integrate business use of home deductions.• No double taxation of profits. Cons • No liability protection, except through insurance.• Self-employment tax is assessed on entire profit of the business.• Transfer of […]

Business Entity Comparison Chart

Entity Accounting and Recordkeeping Fringe Benefits Liability Sole proprietor, singlemember LLC, and husband/ wife business • Schedule C (Form 1040), Profit or Loss From Business• Schedule F (Form 1040), Profit or Loss From Farming• Schedule SE (Form 1040), Self-Employment Tax• IRS Pub. 334, Tax Guide for Small Business• Accounting is less involved than partnerships and […]

Develop a plan of action for your company with Divvy

Divvy has studied the habits of resilient businesses to find out how they not only survive financial downturns—but make it out even stronger. Their field guide breaks it down into four actionable steps that your team can implement immediately: Balance value + innovation Discipline finances Prioritize customer-facing teams Stick to the essentials Is your business […]