Tuesday, 24 May 2016

Tatum Sherman Explains Sole Proprietorship

Tatum Sherman is the owner of Resource Referral, a staffing firm in New Jersey that has helped thousands of professionals find work that meets their skillsets. Part of Tatum Sherman’s success is due to her thorough knowledge of business, including law, and financing. Business is a complicated discipline of study with many different subjects. Ownership of a business for instance, has four different classifications, sole proprietorship, partnership, corporation, and cooperative.

Sole proprietorship is a form of ownership of a business. It is the simplest form of business ownership. A sole proprietorship means that a business is owned and ran by a single person. Therefore, the business and the person have no legal distinction. That means that the owner is accountable directly for all of the legal and financial obligations of the business, including debt, loans, law suits, and more.

The advantage of a sole proprietorship is that the owner receives all profits the business generates, apart from taxes. The downside to this is that the owner is also completely responsible for any financial or legal issues that may arise.

It is also worth noting that a sole proprietorship classification does allow the business owner to hire employees. However, under sole proprietorship, the owner is fully responsible for any actions employees take in the service of the business. As a plus, a sole proprietorship is not subject to additional business taxation, as owner and business are considered one entity.

Part of the reason that Tatum Sherman has been so successful as an entrepreneur is her knowledge of business, the legal and financial side.