BUS 207 Study Guide - Final Guide: Mark Zuckerberg, Offering Circular, Double Taxation
Document Summary
It is one owner therefore legally, you and the business are the same for the purpose of taxes and liability. He/she makes all management decisions, all profits are his/hers, he/she assumes greater liability, he/she is personally liable for all the obligations of the business. You may have to obtain a business license to do business. Purpose is to let the public know the true owner of the business. It is wise to conduct a name search to avoid a possible conflict with a business already using the name or a similar name (intellectual property issue) For income tax purposes, the owner and the business are treated as a single entity. Profits are taxed in the year that business makes/earns them, whether or not you remove them from the business (i. e. business income and business losses are reported on your own (individual) federal tax return) The entity does not own and file its own entity tax return.
