08.17.07
Targeting Sole Proprietorships
Many businesses start out as sole proprietorships, and that’s not necessarily a bad thing depending on their individual circumstances. However, converting to a corporate or LLC business structure does have its benefits. One of those primary benefits is taxes.
Now, Uncle Sam appears to nead a little more cash because they’ve been eyeing sole proprietorships lately. According to a recent GAO (Government Accounting Office) announcement it suggests that the IRS will start paying closer attention to the tax returns of sole proprietors as a way to raise a little cash.
What does it mean for sole proprietors? If you choose to continue operating as a sole proprietor, then be sure to keep detailed business records and do not co-mingle your person and business assets. Otherwise, Uncle Sam may come knockin’ on your door for a loan.
