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digitalv - 6:45 pm on Jul 13, 2004 (gmt 0)
It can be difficult for a sole proprietorship to buy a house or a car without a stable/verifiable income - a weekly paycheck, even if it's a small one, does this for you. There are a number of payroll services out there if you don't know how to do (or don't feel like messing with) this sort of thing, and many of them even offer benefits. If this is going to be a full time business for you and you won't be taking a paycheck from someone else while you work for yourself, then set up a corporation and have a payroll company manage your books. Pay yourself a salary and your Payroll company will give you a check or direct deposit every week with taxes and social security and medical insurance taken out already. It eliminates the extra pressure of running a business solo.
You should always incorporate over sole propietorship. Aside from the liability and tax benefits to corporation, it's a good thing to separate your corporate income from your personal income and pay yourself a salary.