Where Form 944 Pr Businesses 2024

All right, today I'm going to discuss a sole proprietorship and why it is generally a bad idea for your business. In 1062, the EPF Trust SP discussed why it's essential to avoid sole proprietorship. Applause. At one point in my career, I thought it would be cool to start my own engineering business, becoming a sole proprietor. This meant that I did not form a corporation or any other necessary legal steps. However, what I didn't realize was that I was exposing myself to a huge amount of liability. Allow me to provide an example. Wells Fargo contacted me, requesting that I stop all activity. They specifically demanded the removal of the air-conditioner and condenser units from the roof. They made it clear that accessing the roof without their express permission would be considered criminal trespass. Although the conversation continued, the following day, I received a letter from Wells Fargo's Senior Council delivered by a man in a Range Rover. The letter accused me of damaging their roof. I handed it over to my attorney, who found it amusing. However, the point I want to emphasize is that with a sole proprietorship, if I had been successfully sued, I would have lost everything, leaving me with a significant financial burden. Currently, I am not extremely wealthy, so even a one million dollar lawsuit could completely wipe me out. I have many valuable possessions, such as cars, and I enjoy activities like going to the racetrack and drifting. I certainly don't want to lose everything. Therefore, it is crucial for me to protect my assets. The same advice applies to anyone thinking about starting their own business. Consult with an attorney and consider forming an LLC, partnership, or an S corp, whichever suits your needs best. There are numerous types...