Sole Proprietorship vs Corporation
Is an S corp the same as a Sole Proprietorship?
No. An S Corp is a Corporation. A Sole Proprietorship is not a Corporation.
By setting up a small business as a corporation from the beginning, the full time in business will be reflected with the secretary of state and with main business credit agencies. Both Dun & Bradstreet and Experian business credit are major credit reporting agencies. These reportings will later help the small business owner in their efforts to obtain a small business loan.
What is the difference between a Sole Proprietorship and a Corporation
A Sole Proprietorship is one indidual operating a business and are the sole owner
of that business. They are not a Corporation and do not receive the protections and other benefits that being structured as a Corporation provide.
A Corporation is a type of company structure that is more commonly used for larger companies. This type of company structure affords certain important legal protections to the owners of the Corporation. The Corporate business structure provides a strong barrier against owners being sued individually for damages.
A sole proprietorship is not listed with the secretary of state with most states. Some states offer listing sole proprietorships under fictitious name certificate sections. However, this is not the case with all states and even in the states which do list fictitious names, the section for finding these names is often not as prominent as the sections for corporations. The result is when you are doing something important with your small business, such as obtaining a small business loan, setting up trade accounts, people will be looking for you.
When someone is looking for your business listing, you want them to find you.
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