How Form 8865 Ownership 2024

Hello, welcome to biz 113 introduction to business. Today we'll be going over the forms of business ownership. The most common type of business we see in the U.S. is a sole proprietorship. This is a business that's owned by only one person. Approximately 72 percent of U.S. businesses are sole proprietorships, and it's the easiest and cheapest type of business to form. All you really need is a business license. So, what are some examples of sole proprietorships? Pretty much neighborhood businesses. For example, in Media, Pennsylvania or Haddonfield, New Jersey, you'll find all these cute little shops that could say, "Smith & Sons." Smith is the owner, his sons work for him, and eventually, they will inherit the business. Most small companies are sole proprietorships. As a sole owner, you have complete control over your business and all the decisions that need to be made. If you're a control queen, this is the kind of business that works best for you. You are also entitled to all of the income earned by the business, minus taxes and expenses, of course. Profits of a sole proprietorship are taxed as personal income for both federal and state taxes, and there are no special business taxes attached. There are significantly fewer government regulations for this type of ownership. When we look at the advantages, it is a great opportunity for somebody who has the drive and skills to really make a business run. However, there are also a lot of disadvantages. For example, if you die, the business is dissolved. This means that if the business is owned by one person and they pass away, the business license was in their name. So even if somebody wants to buy the business, they are going to have to take out their own business license. You have...