Let’s briefly review what each organizational structure means for your business and what types of reporting your accounting system needs to provide for you, your shareholders, your partners, and the IRS.
If you are operating the business as a single owner, sole proprietor is definitely the easiest designation to choose. In fact, the IRS assumes you are a sole proprietor if your business has only one owner unless you have incorporated the business under state law.
Although running your business as a sole proprietor is the simplest form of organizational structure, there is a big downside. Your ...