Analyzing Sole Proprietorships and One-Member LLC's

Sole proprietorships and one-member limited liability companies (LLC's) are different in some respects, but very similar in others. Even though one-member LLC's provide some protection through the establishment of a separate legal entity, the operations of these two businesses are often very similar. Likewise, both sole proprietors and owners of one-member LLC's file their taxes in the same manner, by completing a Schedule C on which the owner reports the profit or loss from business activity. No balance sheet is required of these types of business organizations, although the information that is contained in a standard balance sheet is often necessary in order to conduct a complete credit analysis.

Topics Covered:

  • Sole proprietorships: definition and characteristics
  • One-member LLC's: definition and characteristics
  • The Schedule C: what it does and doesn't include
  • Questions that need to be asked when a Balance Sheet is not available

Who Should Attend?

Credit Analysts, Loan Officers, Branch Managers, and Loan Committee members will benefit from this program.