In most countries (and I very much doubt USA would differ) a sole trader is taxable on any revenue, howsoever earned, in any country.
Companies differ and may utilise numerous other routes, but cost via saving/s must be a consideration.
Should anything other apply to sole traders, the potential revenue loss through such tax avoidance would be, or fast grow, too enormous to ignore.
Personally, I have always gone the Company route/s; since should the venture fail, or simply not generate income/s enough to justify it's ongoing,
the same structure can still be used in another business, then with little to no cost.
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