Question
sole proprietorship vs. partnership?
My friend and I started working together in 2007. He arranged with me that I would form a sole proprietorship In beginning of 2007, and we added him to the business certificate in december, before the year's end. For tax purposes, can the operations of this business be treated as a partnership for the entire year, or must I file taxes as a sole proprietorship for most of the year?
1 month ago - 1 answers
Best Answer
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Hi, What you did in December was add him as an associate of your business. You should refile under a partnership because right now if you get sued you will be the one sued and you will be responsible for not only the law suit and all bills but your partner might be able to turn around and sue you again. You will need to desolve your sole proprietorship and make it a partnership. This is the best way for tax purposes in your interest.
Source(s)
life experience.
by Joseph
1 month ago
Asker's Rating: 