Individuals and Sole Proprietorships

What this video covers

• The precise exam distinction between a natural person (any living human) and an individual (a natural person acting as a client)
• The four suitability pillars for individual clients: life stage, risk tolerance, tax bracket, and liquidity needs
• Why a high tax bracket individual seeking income is a textbook signal for municipal bonds
• How sole proprietorship income flows to Schedule C of the owner's personal tax return, not a separate business return
• Why a sole proprietorship provides zero liability protection and creditors can seize the owner's personal assets, bank accounts, and home
• What no continuity of life means: the business ceases to exist when the owner dies or stops operating
• Why the exam deliberately confuses individuals with sole proprietorships, and how to separate the two in liability and structure questions