From Sole Proprietorship to Employer: 4 Tips for Making the Move
Business is booming: It's time to shift from sole proprietorship to employer. Here are four tips to help the process.
1. Choose WiselyS Corporations typically don't pay corporate taxes but instead pay out on dividend earnings, while Limited Liability Companies (LLCs) offer personal protection against lawsuit or debt.
2. Create Your CorporationThis means starting from scratch — creating a corporate name, "selling" your sole proprietorship to the new company and transferring ownership of any company vehicles or capital property. Get legal assistance so you don't miss anything.
3. File DocumentsYou need to file the Articles of Incorporation document with your state government office, register with the IRS, and obtain new business licenses and