[Jean-Paul]

I was a sole proprietor for the first 5 years I was in business. It is fine, but you get much better tax advantages being incorporated, plus your personal assets are protected by the corporate veil if your business tanks. In other words, if your business closes with you owing money, they can't come after your house.

S-corp is easy if you are going to be the sole owner. I'm set up as an LLC, primarily because it makes it easy for me to take on investors, which when I first incorporated, I needed. I had investors buy in, and I bought it back from them over time (with interest of course). Once I had paid them all off completely, I gave my wife 1% so I could maintain LLC status in case I needed to raise more money later. It's a lot easier sometimes than going to banks, or in conjunction with going to banks.

LLC also has a very cut and dry tax code. I pay an annual "franchise tax" which is pretty low, and other than that I just have to keep up with my 941's. DO NOT fall behind on your 941's!

S-corp is the way to go if you are basically going to be a one-man operation, like if you were independent, working out of several clubs, of if you owned a small gym.