Well. Be a little careful. If you're an unincorporated sole proprietor of a single-person company, many large companies will try to withhold taxes when they pay you; it's a problem several friends of mine have run into in trying to start consultancies and small product companies.
The sole proprietor simply files, via his/her income tax return for the withheld income at the end of the year. This is merely one aspect of the panoply of issues to consider on incorporating.
You're talking about the business owner's relationship with the IRS. I am talking about what happens in the real world between the business owner and their large clients, who will indeed sometimes try to withhold if they aren't actually incorporated.
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Well. Be a little careful. If you're an unincorporated sole proprietor of a single-person company, many large companies will try to withhold taxes when they pay you; it's a problem several friends of mine have run into in trying to start consultancies and small product companies.
The sole proprietor simply files, via his/her income tax return for the withheld income at the end of the year. This is merely one aspect of the panoply of issues to consider on incorporating.
You're talking about the business owner's relationship with the IRS. I am talking about what happens in the real world between the business owner and their large clients, who will indeed sometimes try to withhold if they aren't actually incorporated.