LLC entities have limited liability (like corporations), but may be taxed as sole proprietorships
(for which income and expenses flow through to the owner to be taxed), if they are owned by a single, individual member.
The number of sole proprietorships
that went out of business in October 2010 went up 65.
Though the requirement to undergo peer review applies only to firms, the CBA does not maintain a listing of CPAs operating as sole proprietorships
The conversion of a sole proprietorship
into a limited liability company (LLC) is accomplished by filing for a certificate of formation (or other required document), paying the appropriate fee and executing articles of organization and an operating agreement (if required).
In tax year 2001, there was wide variability in the expenses of sole proprietorships
by business characteristics such as gross receipts, industry category, businesses with inventories, and businesses with home offices.
Depending on their firm's purpose or the way they conduct business--including how much liability they are willing to assume or the type of fringe benefits they plan to offer--CPAs can structure their financial planning practices as sole proprietorships
, S corporations, C corporations or limited liability companies.
Half of the new businesses were sole proprietorships
, a third were limited companies and the rest partnerships.
Because most businesses begin operations as sole proprietorships
a discussion of this business form is the appropriate starting point.
5) Small businesses were most commonly organized as sole proprietorships
, which accounted for more than 40 percent of firms; about 30 percent were organized as C corporations, 20 percent as S corporations, and the remainder as partnerships.
Face Lowest Rates, S Corporations Highest
76 percent while the number of sole proprietorships
The major legal forms of economic organization are: corporations, partnerships, and nonfarm sole proprietorships