Partnership vs. Sole Proprietorship

[Kalrog]

Does anyone have any information as to what the tax implications are of choosing a partnership vs. a sole proprietorship? My wife and I are doing this together so from a naming standpoint, a partnership seems to be the best way to go. But what tax implications would this decision have and is it just easier to go into business as myself?

[bondarnes]

I'm not a CPA, but I stayed at a Holiday Inn. In my opinion, if it is you and your wife, I would recommend either a sole proprietorship or an LLC. A partnership adds some accounting steps and serves no practical purpose that I can think of. Talk to a CPA if you really want a correct answer though.

[soonerdg]

I agree with Don. I'm not sure that you would gain anything by forming a partnership between a husband and wife. Unless the two of you file your taxes separately. If you file jointly you'd be better off with a sole proprietorship or an LLC. Although, if set up correctly an LLC would afford far more protection of your personal assets should your business not succeed.

[sonesta]

Definitely LLC and not a partnership.

[WarrenG]

Originally Posted by bondarnes

talk to a cpa if you really want a correct answer though.

+1 to Don's suggestion.

There is more that needs to be taken into consideration than just a broad statement of doing one over the other. You need to talk to your accountant to find out all of the legal ramifications and how they will affect you and your wife specifically.

Do some research so you are well informed when speakingto your CPA.

W

[Kalrog]

Thanks all!

CPA has been contacted.