Reference no: EM132277395

You make some good points. The one person concept also applies to a corporation. The sole owner of a business can incorporate or form an LLC and be in total control of the business. You do not need to remain a sole proprietor. I have formed many corporations where one person is the sole shareholder, sole director, and the sole officer. He or she wears all the hats. LLC's can work in the same way with only one person as the sole member and manager. You do not need two or more persons to form a corporation or LLC. You can form a corporation, make an S corporation election, and have most, if not all the benefits of an LLC. The difference being that an LLC is that any income passing through it is self-employment income and subject to social security and Medicare taxes. It is a pass through entity just like an LLC. You can be the "one man band" and still have the limited liability protection of a corporation or LLC. Some students have trouble with this concept. However, the laws let you do it. You have all the advantages of being your own boss, but with the limited liability of a corporation or LLC. You can be in total control of your business and still use a corporation, limited liability company, or just about any other form of entity to carry out your plans. You may take advantages of these other forms of entity without the need to share your idea or the profits that may come from it. Moreover, remaining a sole proprietor usually works to an entrepreneur's disadvantage when it comes to financing your ideas and protecting yourself from business creditors. You will need to choose something else to help you realize your goals. Remaining a sole proprietor usually results in a dead end for a new entrepreneur. What do you think?