If the business acquires debts, the collectors can go after the proprietor’s private possessions. A business structure doesn’t permit for corporate tax charges. The proprietor is personally taxed on all earnings from the business. Business savings accounts typically earn interest over time but have a limited variety of transactions that may happen every month. When you’re just starting out, look for a business bank account that does not have a minimal stability requirement so you are not penalized for having low funds as you’re employed to build your business. Sole proprietorships are businesses owned and operated by one person and aren’t recognized as a separate entity from the owner by the federal government.
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