Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

If I were to establish a 'Sole Proprietorship' could I

Customer Question
If I were to...

If I were to establish a 'Sole Proprietorship' could I purchase a insurance policy that protects me and my homelife from debts and liabilities of the business?

Accountant's Assistant: Because laws vary from state to state, can you tell me where the business is located?

Virginia

Accountant's Assistant: Has anything been officially filed? If so, what?

No. I'm trying to figure out what would be best first.

Submitted: 7 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 10 minutes by:
12/7/2017
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 7 months ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,655
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

Hi Debbie. My name's Lane

...

THe sole proprietorship is what's call a default business type ... meaning that if you start doing business and DON'T set up an LLC, S-Corp, or C-Corp then IRS treats you as a sole proprietor (you'll simply file a schedule C to report the income and expenses of the business, with the profit flowing to line 12 of your regular tax return (business income or oss).

...

What you MIGHT want to consider is an LLC which DOES provide the corporate liability protection of the corporation with the simplicity of a Sole Proprietorship.

...

But the Sole proprietor is seen as NOT separate and distinct by state corporate law.

...

You Certainly CAN buy business liability insurance (be sure of the policy specifics) to cover those business liabilities in a different way

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 7 months ago

Please let me know what question you have from here.

...

Lane

I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, on three continents, since 1986

Ask Your Own Tax Question
Customer reply replied 7 months ago
I've considered an LLC. I am totally new at this business thing and I kind of want to ease in to all the requirements of a business, if you know what I mean. I like the fact that all income is reported on my taxes and I don't have to file quarterly reports and pay federal insurance. Right?
Customer reply replied 7 months ago
I've already paid $52. If you call me is it another $52?
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 7 months ago

It is BUT, that's an additional offer that the site throws out there (that did n't come from me) We can still continue chatting here and there's no additional charge

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 7 months ago

On your question... that's exactly right. You'll simply be taxed on whatever profits you end up with for the tax year... no quarterly payroll taxes, and no unemployment insurance either.

...

I typically recommend that my clients start with the LLC

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 7 months ago

A Virginia LLC is created by filing Articles of Organization (Form LLC-1011) with the Virginia State Corporations Commission. The articles must include: the LLC's name and address and the name and address of the LLC’s registered agent. The articles may be filed online at the Virginia New Entity Formation webpage, or by mail. The filing fee is $100.

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 7 months ago

Please let me know if you have ANY questions at all, before rating me.

If this has helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

That’s the only way JustAnswer.com will credit me for the work here.

...

I have clients coming to sign some papers, but will be back on in 45 minutes or so. Let me know if you have any questions at all

Thanks,

Lane

Please let me know if you have ANY questions at all, before rating me.

If this has helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

I hope that you’ll rate me based on my accuracy and thoroughness, rather than any good news/bad news content.

That’s the only way JustAnswer.com will credit me for the work here.

Thanks,

Lane

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 7 months ago

Hi, Lane here.

...

I’m just checking back in to see how things are going.

...

Did my answer help?

If so, I'd appreciate a positive rating, using the stars on your screen, and then clicking “submit" – That’s the only way I’ll be credited for the work.

But if you need more on this please let me know

Lane

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,655
14,655 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I need to ask questions about LLC vs sole proprietorship in
I need to ask questions about LLC vs sole proprietorship in California … read more
Brian Michels
Brian Michels
Partner, CPA
Bachelors of Business Administration
422 satisfied customers
I am trying to figure out whether or not I should set up an
I am trying to figure out whether or not I should set up an LLC in Florida for expected future earnings for miscellaneous services I will be providing to a third party. … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,444 satisfied customers
I am starting up an on-line business. Do I need to set up an
I am starting up an on-line business. Do I need to set up an LLC? And when should I do so? … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,328 satisfied customers
My husband is a 2nd year resident, and started moonlighting
My husband is a 2nd year resident, and started moonlighting for extra $$ as an independent contractor. We are contemplating forming an LLC, but unsure if there are really advantages over a sole propri… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I have recently started a business- an llc in New York. I am
I have recently started a business- an llc in New York. I am and will continue to be the only owner. I need to understand the difference/drawbacks/benefits of having my llc as a corporation versus a s… read more
Tax.appeal.168
Tax.appeal.168
Principal
13 satisfied customers
I have plan to purchase rental property and file a Sch E
I have plan to purchase rental property and file a Sch E with my tax return for rental income. I am worried about any responsibility/liability for tenant's physical injuries and any damage/loss. how c… read more
CFEPro789
CFEPro789
Fraud Analyst
Master\u0027s Degree
369 satisfied customers
I have a business I just started. I spent several hundred to
I have a business I just started. I spent several hundred to get start up items and have since gotten a business loan. Can I reimburse myself for the things I already bought and if so how would I do t… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
I am starting an LLC and would like to pay as little tax as
I am starting an LLC and would like to pay as little tax as legally permitted. I have heard that you can base your LLC in certain states that have lower taxes than where you will be conducting most of… read more
DanielleCPA
DanielleCPA
Certified Public Accountant
Bachelor's Degree
76 satisfied customers
The county where we has an incorporated business is billing
The county where we has an incorporated business is billing for taxes on a close business in TEXAS. A business which created conditions for us to file chapter 7. The letter is a Notice of Tax Lien. We… read more
Lane
Lane
JD, CFP, MBA, CRPS
Doctoral Degree
14,655 satisfied customers
If owners of a small business C-Corp takes assets out of the
If owners of a small business C-Corp takes assets out of the C-Corp and put them into their own name, I understand the gains would be taxed on a Corporate level and again on an individual level..... W… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
Is life insurance required by a bank to insure the life of
Is life insurance required by a bank to insure the life of a dentist, who is a sole proprietor, deductible by the proprietorship. This insurance is to pay off the bank loan in the event of the proprie… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
How do I get all necessary lisences to start a lawn service.
How do I get all necessary lisences to start a lawn service. What other requirements are there (insurance,criminal history,etc)… read more
DanielleCPA
DanielleCPA
Certified Public Accountant
Bachelor's Degree
76 satisfied customers
Hello JK, I have a sole proprietorship and my question is,
Hello JK, I have a sole proprietorship and my question is, if I register a DBA and business checking account, would that business checking account be subject to collection activity from collections/ju… read more
Bizhelp
Bizhelp
Certified Public Accountant (CPA)
Bachelor\u0027s Degree
2,942 satisfied customers
I have a small home-based fitness business and am advised to
I have a small home-based fitness business and am advised to switch sole proprietorship to “C” Corporation for tax advantages and then list it in a limited partnership for maximum asset protection. Al… read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,512 satisfied customers
Me and my wife are thinking about running a vacation/sublease
Me and my wife are thinking about running a vacation/sublease properties for short stays and business in NYC. We would like advise on how to proceed. What type of taxation we will be subjected to. I d… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I am a sole proprietor and have my own employee benefits ...
I am a sole proprietor and have my own employee benefits business (medical insurance and group insurance program sales). I work with a company that takes 100% of the commission and pays me 50% by 1099… read more
Bill
Bill
Master's Degree
2,278 satisfied customers
My husband wishes to change employment from a large ...
My husband wishes to change employment from a large corporation to a start company with no benefits. The value of hes current compensation package with all benefits including health,dental,401k with e… read more
MequonCPA
MequonCPA
CPA Firm Owner
Master\u0027s Degree
2,290 satisfied customers
If a sole proprietorships assets are sold in exhange for ...
If a sole proprietorships assets are sold in exhange for forgiveness of loans made by the purchaser to the other business (in business name, not peronal loans), HOW is this considered and accounted fo… read more
jonacpa
jonacpa
CPA
48 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x