Sole Proprietorships in New York 

In the past, we’ve discussed “entity selection” in several different contexts. Entity selection is a process which essentially involves determining which entity best suits a given situation for tax and liability purposes. Numerous factors contribute to this determination including, but not limited to, the number of shareholders and location. C corporations, for instance, face double taxation because they are subject to tax at both the entity level and the individual shareholder level; S corporations, on the other hand, are pass-through entities, and therefore a taxable event occurs when there’s a distribution to shareholders, but S corporations have a shareholder maximum, unlike with C corporations. There are plenty of other differences between the various possible business entities and each can influence the entity formation consideration process. A sole proprietorship is the simplest type of business entity, and this type of…

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