November 17, 2015 Structuring en_US Learn why Suzie Moldavon decided to run her business as a sole proprietorship. https://quickbooks.intuit.com/cas/dam/IMAGE/A0HD26mUd/5311a5cf4025ebb38e8aed48c00db8e3.jpg https://quickbooks.intuit.com/r/structuring/video-sole-proprietorship-the-structure-that-simplifies-your-business Sole Proprietorship: The Structure That Simplifies Your Business
Structuring

Sole Proprietorship: The Structure That Simplifies Your Business

By Suzie Moldavon November 17, 2015

Choosing the proper business entity is a lot like buying a home. Does it allow your business enough potential to grow? Does it offer you the right amount of protection? Is it high maintenance? These are all questions you must ask yourself when researching how you want to structure your small business. Whether you want to conquer the market or simply your bills, choosing the right entity can have a profound effect on your success in doing either. For world domination, most would suggest an S- or C-corporation.

But for makeup artist and eyebrow expert Suzie Moldavon, the reason she chose to operate as a sole proprietor was simple: taxes. Suzie spoke with her accountant and bookkeeper about the possibility of forming a corporation, but the requirements associated with creating one outweighed any advantage she saw for her business. For instance, she would have to pay herself a conventional salary as an employee of the corporation. This is in contrast to being a sole proprietor, where anything Suzie earns is automatically treated as personal income, with no complication from things like double-taxation or annual filing. In Suzie’s case, a sole proprietorship keeps her finances clean and simple.

Choosing the right business entity a foundational step to building your financial future. If you’re unsure of how to go about structuring your business, speak with your bookkeeper, lawyer or accountant for their recommendations. Additionally, pick the brains of any friends or family you may have that run their own businesses for their advice. Research is always a huge part of any business planning. So, as long as you do your homework up front and track your cash flow as you go, you can rest assured that the entity you choose will enable you to grow your business to your expectations.

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Suzie Moldavon is a mobile makeup and eyebrow artist who serves clients throughout Los Angeles. Renowned for her ability to create a flawless face, Suzie’s work has been pictured in many publications, a sample of which includes People, Today's Black Woman, Emmy and Texas Monthly. Her clients include celebrities like Lady Gaga, Larry King and Meghan McCain, and regular corporate clients like Conde Nast Publishing, Time Inc. and CBS Television. As sculpted brows are every season’s greatest facial accessory, many turn to Suzie to keep them "arched to perfection." Read more