the business

“Depending on what the business is, you may need to progress from there at a later date.”

All income flows through the business to the owner, who reports profits and losses on their personal tax return.

You also take on more risk because there’s no legal separation between the owner and the business.

Once you're sure the business will take off, Sprung added, it's typically best to switch over to an LLC or corporation.

You also get to share knowledge and divide work based on each partner’s skill set, and the business is easy to set up and shut down.