The sole proprietorship involves
a single, individual owner who is liable for all of the debts, obligations,
and liabilities of the business. Business may be conducted under
a trade name providing compliance with North Carolina law which
entails the filing of an assumed name certificate. With respect
to federal income taxes, income of the owner is reported on Schedule
C, Business or Profession, and attached to the owner's tax return
setting forth the income or loss of the business. A disadvantage
of the sole proprietorship is that it offers no protection of your
personal assets from creditors of the business.
