2007-05-13 10:53:30 · 5 answers · asked by NYTrader55 2 in Business & Finance ➔ Small Business
Bankruptcy is not always the answer. But it is a given fact that most businesses do not make a profit the first five years of business. Personally I would not keep my business as a Sole Proprietor and invest in becoming and LLC. You can find those filings with your state department. Additionally any looses are reported on your taxes under I believe Schedule C and it gives you a tax deduction on your taxes b/c the business is considered "At Risk." If you are in the DC, Maryland, VA area I am having a class on many of these topics 5/19/2007. See the resource listing below.
2007-05-13 12:44:31 · answer #1 · answered by Concepts101 1 · 1⤊ 0⤋
Besides RKO being correct, you obviously should not open up a sole proprietorship because your mindset is focused on FAILURE. [Duhhhh --- haven't you heard of the Secret???]
Until you can get your mind right, you should continue to be a worker bee for someone else and make them money because you absolutely do NOT have what it takes.
2007-05-13 11:10:38 · answer #2 · answered by Querious 3 · 0⤊ 0⤋
The losses are paid from your personal wealth. (Out of your pocket) How you do that is between your creditors and you. If this is your biggest concern about starting a business, don't.
2007-05-13 14:10:50 · answer #3 · answered by Michael B 5 · 0⤊ 0⤋
Use your personal assets to pay off the debts.
Borrow the money to pay off the business losses.
File bankruptcy.
2007-05-13 10:59:05 · answer #4 · answered by -RKO- 7 · 0⤊ 0⤋
RKO is correct.
2007-05-13 11:01:13 · answer #5 · answered by Dean C 2 · 0⤊ 0⤋