Sole Proprietorship
A business owned by one person with no legal separation from the owner.
What is Sole Proprietorship?
The simplest business form. The owner has unlimited personal liability for business debts and reports business income on their own return (Schedule C). An account for the business is effectively an individual account.
Sole Proprietorship: a worked example
A self-employed consultant operating under their own name.
More terms in Clients, Strategy & Tax
General Partnership
Co-owners share management and unlimited liability; income passes through.
Limited Liability Company (LLC)
Limited liability for owners with pass-through taxation by default.
C Corporation
A separate taxpayer - profits taxed at the corporate level, then again as dividends.
S Corporation
A corporation that passes income through to shareholders, avoiding double tax.
Trust & Estate Accounts
Accounts run by a fiduciary - a trustee or an executor - under a governing document.
Foundations & Charities
Tax-exempt organizations investing for a mission, often in perpetuity.
Client Profile & Data Gathering
The financial and nonfinancial facts every recommendation must rest on.
Investment Objectives
Preservation of capital, income, growth, growth and income, speculation.