Ask Your CPA in Tampa about the Benefits of a Sole Proprietorship

Ask Your CPA in Tampa about the Benefits of a Sole ProprietorshipThe decisions you make when you start a new business will affect everything you do later as your business grows. And, if you’re all by yourself in your new enterprise, it can be a bit daunting to make important financial and legal decisions on your own.

That’s why the wise entrepreneur in the Tampa Bay area will seek the advice of a CPA in Tampa at Reliance Consulting, LLC. Founded in 1984, Reliance has provided guidance for countless new and established businesses, including many with the simplest form of business structure, the sole proprietorship.

It is the most common legal structure for small specialty businesses in which the owner provides the service or personally manufactures and markets the product. As with every form of business, there is risk: mainly, the owner of a sole proprietorship is personally liable for business losses and debt.

There are many advantages, though, including:

  • Simplicity of startup
  • Fewer regulations to worry about
  • Full autonomy for the owner
  • The ease of discontinuing the enterprise, if necessary

For certain types of business, particularly a business that’s built around one skilled individual who offers a specialized service for sale on a freelance or contract basis, a sole proprietorship might be the best way to start out. However, as the business grows, or as demand for the offered service increases, it might become necessary to hire employees to meet the demand. While this certainly is good news for the business, it also could create the need for a more complex legal structure, such as a corporation or a limited liability corporation (LLC). Generally, the more complex the business, the less likely a sole proprietorship will remain the optimal option.

The best way to determine whether a sole proprietorship is the most advantageous route for you is to contact your CPA in Tampa at Reliance Consulting, LLC. We’ll help you reach your goals.

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