Many small business proprietors start with a sole proprietorship stay away from the costs of forming a corporation or LLC. This is usually a wise decision as statistics show that most small businesses lose cash for the first several years. The federal income tax statutes echos the language of the 16th amendment in proclaiming that it reaches "all income from whatever source derived," (26 USC s. 61) including criminal enterprises; criminals who for you to report their income accurately have be...