The Legal Structure of Your Wedding Planning Business – Sole Proprietorship

 

One of the first things you need to do when you start your business is determine your legal structure. The choices are sole proprietorship, partnership, Limited Liability Company and corporation. I’ll explain what they are and mention some of the advantages and disadvantages of each one. Consult your accountant before you decide what is right for you.

Sole Proprietorship
In this business entity, you are the sole owner. It doesn’t mean you can’t have someone working for you, it just means you are the only owner and you don’t report to anyone. This is how most wedding planners start their businesses, it’s the way I started, because it is the easiest and the least expensive way to begin a business. There are very few filings and registrations and few administrative issues. You can report your business on your personal tax return, which is an advantage to most people. A disadvantage of this form of business is the fact that you are personally liable for any and all obligations and debts of the business.

I’ll talk about other business entities in the next blog post.



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