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Folks,
Miss Kiki is to proud to introduce to you, the King of  |
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the Pretzels. That's
right, he's Sara's uncle and he helped explain Business Structure to her, so we asked him
to come out and help explain it to you. Please welcome, Big Daddy! Big Daddy owns one
of the most successful businesses around-Big Daddy's Pretzel Palace, featuring the
tastiest, hottest, freshest pretzels around! Big Daddy's Pretzel Palace is what you call a
Sole Proprietorship business. It means Big Daddy is the only owner, plain and simple.
Well, let Big Daddy explain… |
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| A sole proprietorship is an unincorporated business, such as Rowdy Nails, that's owned by one person, Sara. Keeps it simple. No Sara, no Rowdy Nails. All expenses are Sara's and all liabilities are Sara's. She takes responsibility for all the risks of Rowdy Nails, for all assets owned too… that's the fun part! Just like my own Big Daddy's Pretzels (tasty stuff!), whether these expenses and liabilities are used in the business or personally owned, it still comes down to Sara. This means that when she files her tax return, she includes the income and expenses of Rowdy Nails on her own Form 1040 Schedule C. | ||
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