Chapter 2: Making it Legal
Sole Proprietorships: The Structure of the 21st Century
While there's no best solution for every business, Skylar Bader , of YourStartupLawyer.Com , cautions against assuming you have to ditch sole proprietor status once you've been operating a while. "I'm really shocked how few lawyers in [the field of startup advising] will actually recommend sole proprietorship," she says. "I think that's because we're taught an older model of business: you rent a building and hire employees… But the business model [of today] often doesn't look like the Mom and Pop store of yesteryear." When it's just one person toiling away in a home office, there may be no need to file additional paperwork to change the business structure.
Of course, no matter what your goals and plans, it helps to have input from an expert. The relatively small amount of money you'll spend on talking with a lawyer and / or accountant about choosing a good structure for your goals can pay big dividends down the line.
Next: Chapter 3: Dealing with the Taxman