When a sole proprietor sells his or her business, they own a business and are responsible for all of their work, accounting, and taxes.
When a person or entity is “part of a partnership”, they have an interest in the business but also have to bear some of the responsibility for the business. A partner may be an owner, but a partner also has some responsibilities for the business, usually to other partners.
When a sole proprietor makes a sale or partnership, they own a limited liability company and are responsible for the liability of the proceeds. If a person makes an investment, they own a limited liability company and are responsible for the amount of the investment. If a partner makes a sale, they own a limited liability company and are responsible for the amount of the sale.
What about a sole proprietorship? It has the same basic set of responsibilities. You either own the business or you don’t. Also, the person making the sale is responsible for the tax liability and the income taxes on the sale.
For a sole proprietorship, the person making the sale is legally responsible to pay the tax and any income taxes. For a partnership, the person making the sale is legally responsible to pay the tax but the partner is responsible for any income taxes.
If the sale is a joint venture, the person making the sale is legally responsible to pay the taxes and any income taxes. For joint ventures, the person making the sale is legally responsible to pay the taxes and any income taxes. For a partnership, the person making the sale is legally responsible to pay the taxes but the partner is responsible for any income taxes.
The only legal difference between a joint venture and a partnership is that a partnership is a legal fiction, whereas joint ventures are actually illegal. While the income tax is the only thing that a person is legally responsible for, the person that makes the sale is still responsible for paying the taxes and any income taxes. This is a real legal distinction. Whether or not you agree with the distinction is a personal thing.
I agree, it’s a legal distinction. The only thing that matters is your responsibility as a person and your responsibility as a business.
Sole proprietorship is when you own all of the rights to an enterprise and you are operating that enterprise. Partnerships are when you have two or more people who share ownership in an enterprise. The income tax is the only thing a person is legally responsible for, and the person that makes the sale is still legally responsible for paying the taxes and any income taxes.
For a start, the most common types of partnerships are the joint ownership and partnership (where a person owns the rights to the company, owns all of its assets, and does business with the entity).
