Change an S-Corp to a Sole Proprietorship
posted 3 years ago
I'm working towards building a business selling on Amazon. I've been doing this for less than 2 months, and have less than $200 in sales, whereas I've spent about $700 on this. In other words, there's been no profit yet.
When I first started, I was advised to register as an S-Corp to avoid paying self-employment taxes, and for various other reasons as well. The problem: I'm beginning to think I should have just gone with a Sole Proprietorship.
My question is two-fold:
1. Other than being taxed as self-employed vs employed by the company, what are the differences between a SCorp and a Sole Proprietorship?
2. If I do need to switch, I assume that involves dissolving the S-Corp. What do I need to do about that?
Many, many thanks in advance.
- Commercial and Business Law
- Corporate and Company