Top Trending: 22 Habits of Successful Leaders

Can I start a sole proprietorship with my wife jointly?

I am concerned about the tax implications of including my wife. I am also wondering if this would be considered a partnership and not a sole proprietorship.
  • ---Shares
You cannot form a sole proprietorship with any other person, spouse or otherwise. By definition, a sole proprietorship can have only one owner. As soon as more than one owner gets involved, the entity would have to become a general partnership. However, you should speak to an attorney and an accountant about the wisdom (or not) of doing business in a form that leaves your personal assets open and vulnerable in the event of a lawsuit or judgment -- which is the case with sole proprietorships and general partnerships. There are forms of business entities, such as S corporations or limited liability companies, that may be able to provide you with the tax advantages you are seeking without exposing yourself to personal liability.

Find the Right Franchise for You

Complete our short quiz to pinpoint your perfect franchise match.
Find Your Franchise
OK

This website uses cookies to allow us to see how our website and related online services are being used. By continuing to use this website, you consent to our cookie collection. More information about how we collect cookies is found here.