Concession Business

A concession business is likely to be a sole proprietorship. While you have the option to make it a partnership or a corporation, few people choose one of those business structures. A small, independently owned business is the easiest to start and to run, and the profits come back directly to you.

A Sole Proprietorship Concession Business

A sole proprietorship is an unincorporated business. No one else will own stock in it or share the profits. In fact, the business has no legal existence apart from you as its owner. It can be fairly easy to run a small concession business, but there is an occasional pitfall to being inextricably linked to your work.

There is a major danger in owning a sole proprietorship. You are responsible for all assets owned, as well as any liabilities suffered by the business. It is essential to be protected by top-notch insurance if you own a sole proprietorship, and you must consult a lawyer about making sure you are adequately covered.

When you file your tax returns, you are to include the income and expenses of the sole proprietorship. In addition to income tax and self-employment tax, you also need to be aware of employment taxes and excise taxes. As you have no boss paying them for you, you have to pay Social Security and Medicare taxes and possibly federal unemployment (FUTA) tax, as well. Excise Taxes are paid on specific goods purchased, among which is motor fuel, which you are likely to need if you have a mobile concession business.