Sole Proprietorship VS General Partnership - Illinois

[stacyantonia]

I recently registered my assumed business name in Illinois. My husband's name is it on as well. Can I still operate my business as a sole proprietorship? Or do I because of this have to operate and file taxes as a general partnership?

 

[robbins.photo]

I recently registered my assumed business name in Illinois. My husband's name is it on as well. Can I still operate my business as a sole proprietorship? Or do I because of this have to operate and file taxes as a general partnership?

Ok,well I think probably your best place to start would be with the Small Business Administration office in your local area, they are probably going to have a lot more information about the various in's and out's of such a thing than say myself, some random guy on the internet.

 

[Designer]

Both the IRS and the State Department of revenue have people standing by to answer your question. I'd call both.

The reason you want your spouse's name on the business is so that when you die unexpectedly he can still own the assets.

In my state it is considered a sole proprietorship, even if both spouses are actively working the business.

 

[Designer]

I'm not a tax attorney but I play one on the internet. Ain't life grand?

 

[KmH]

I recently registered my assumed business name in Illinois. My husband's name is it on as well. Can I still operate my business as a sole proprietorship? Or do I because of this have to operate and file taxes as a general partnership?

That will depend on the applicable laws in Illinois and US federal tax requirements.

Your best bet for business legal questions is to consult with a qualified attorney and accountant instead of an online photography forum.

 

[Vince.1551]

You cannot operate as a sole proprietor since you are in a partnership (obvious answer I know). In general, partners can file their taxes individually. Do note that unless you have a written working agreement partners in a partnership generally have unlimited powers to act on behalf of the partnership and that includes incurring debt. Partners in a partnership have unlimited liability unless it's a LLP (limited liability partnership) but even that a working agreement is necessary.

If your husband is not involved in your business why would you want to include him? If you want him to inherit whatever interest in your business should anything happen then writing a a Will should take care of it. If not the Wills & Intestacy laws will takeover.

More importantly I feel you need to understand the risk and benefits of the different types of business incorporations.

 

[robbins.photo]

I'm not a tax attorney but I play one on the internet. Ain't life grand?

I got thrown out of a Holiday Inn Express once.

Ok.. well, maybe twice.. lol