This week in my web business creation class we studied business legal structures and the tax situations in our states. One thing that really interested me and was on my mind all week was the type of tax breaks that a person can get as a sole proprietorship vs an LLC or corporation. One of my class mates scared me a bit by saying that as a sole proprietor you have to pay taxes on all your revenue, not just your profit, but after doing some of my own research I found a great resource for tax information as a sole proprietor here: https://www.nolo.com/legal-encyclopedia/how-sole-proprietors-are-taxed-30292.html#:~:text=As%20a%20sole%20proprietor%20you,on%20your%20personal%20tax%20return.)
The other concern I had was for some reason I thought that you could only have your business be an LLC if you started as one from the very beginning, but I also learned that even if you start a business as a sole proprietorship, you can eventually make it an LLC or even a corporation when the time comes if your business grows that much.
