Sole Proprietorships

Sole Proprietorship, individual entrepreneurship, a sole trader, is an unincorporated business owned and run by a single individual. It is the simplest form of enterprise when it comes to set-up and tax payments. However, since the individual and business are considered the same in a sole proprietorship, the individual is accountable for any losses, debts, and liabilities.


Sole Proprietorship requires you to have all the necessary licenses and permits in place. Next Level Tax helps you acquire federal, state, local registrations, permits, and licenses. In case you intend to function under a different name, you can file a fictitious name or a DBA (Doing Business As); this has to be an original unclaimed name.

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Having a single entity also implies that you are not taxed separately. You report income, losses, and expenses with Schedule C and the standard Form 1040. You are responsible for paying all income taxes, which includes self-employment and estimated taxes.


Next Level Tax Sole Proprietorships Advantages

Easy to form

A sole proprietorship has the simplest and least expensive business structure to set up, with a legal cost limited to acquiring permits or licenses.

Next Level Tax Sole Proprietorships Full control

Full control

Owners can make autonomous decisions. You can make all the decisions without the need to consult with anyone.

Next Level Tax Sole Proprietorships Easy tax preparation

Easy tax preparation

As a single entity, you can easily file for taxes. The tax rates are also the lowest among business structures.


Next Level Tax Sole Proprietorships Unlimited personal liability

Unlimited personal liability

Being a single entity, you are personally accountable for all debts and liabilities incurred during the business, even to the extent of employee actions.

Next Level Tax Sole Proprietorships Difficult to raise money

Difficult to raise money

Perceived lack of credibility and inability to sell stock are the main reasons why Banks and investors refuse a credit line.

Next Level Tax Sole Proprietorships Pressure


Despite raking in all the profits, the burden of losses lies in you. Ultimately you determine your business success and failure.