If you are starting your own business, you may be wondering about the differences between a sole proprietorship vs partnership. When you go into business as an individual, you immediately start a sole proprietorship. If you and at least one other person start conducting business together, you create a partnership. Here are some of the core differences between these two entities.
Here’s how a sole proprietorship operates:
If you’re interested in forming a sole proprietorship, start filling out the sole proprietorship application.
This is how a partnership is run:
Submitting a partnership application online takes just a few minutes.
As an entrepreneur, you may not know what business structure to create. The type of legal entity you form will determine the daily operations, liability, and tax obligations of your business. Hopefully, this comparison of sole proprietorships and partnerships will help you figure out what type of business you want to start.
No matter what kind of business you choose to run, you may need a federal tax ID number for opening bank accounts, hiring employees, and paying taxes. Learn more aboutobtaining a tax ID number for your business here.