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Corporation is always better if you are in the U.S. As a sole proprietor, you have less opportunities for tax deduction and are also subject to a self employment tax. Plus you are not faced with any legal liability on your personal assets if the corporation has any unresolved liabilities.
@Warren 233603 wrote:
Corporation is always better if you are in the U.S. As a sole proprietor, you have less opportunities for tax deduction and are also subject to a self employment tax. Plus you are not faced with any legal liability on your personal assets if the corporation has any unresolved liabilities.
Same with Australia… I used to be sole proprietor… paid the $1000 and went for a corporation. Have never looked back either. Also it helps with growth, and giving yourself a wage, retirement fund, funds for projects – it’s what pushed me into running my “hobby / interest” into a proper business.
@Rak 233612 wrote:
Same with Australia… I used to be sole proprietor… paid the $1000 and went for a corporation. Have never looked back either. Also it helps with growth, and giving yourself a wage, retirement fund, funds for projects – it’s what pushed me into running my “hobby / interest” into a proper business.
I’ve always done my tax as a sole proprietor, but it sounds like a corporation is much better. I learn so much from the threads in this forum. I’m going to ask my accountant about this tomorrow. I just thought it was easier to be a sole proprietor, but I guess easy doesn’t always mean better (or it never does lol). Thanks heaps for that Rak
