This post should not be relied upon as legal advice
Just the other day, I posted on the use of business organization structures by Maryland producers and the fact that the vast majority has not adopted any form of business structure to help limit their liability (see previous post). Today as promised, Ashley and I start a series of blog posts on business organization structures. Adoption of a business model will depend on many factors -- tax, personal, financial, etc -- and the goal over the next few weeks is to better inform you about each business organization structure. At the end, to pick the best business organization structure for you and your operation, please talk to your tax professional and attorney to understand how this decision will impact your situation.
A sole proprietorship is the simplest business organization structure which may be the reason so many businesses adopt it. With a sole proprietorship, no filing is required with the state. Creating a sole proprietorship is simple: you just declare yourself a business. The operator of a sole proprietorship has full managerial control over the business. These are some of the advantages to forming a sole proprietorship.
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