California Sole Proprietorship San Diego
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• Unlimited personal liability against claims from lawsuits and creditors against the sole proprietor;
• Business liabilities discharged only through the personal bankruptcy of the sole proprietor;
• Raising capital from investors is not allowed; all funds must be contributed or borrowed by the sole proprietor; and
• All net income is subject to SECA self-employment taxes in addition to federal and state income taxes.
Despite the risks and disadvantages, a sole proprietorship can be the best form of doing business in certain circumstances. Contact San Diego Corporate Law for a consultation for help deciding if a sole proprietorship is appropriate for your business.