I am in the beginning stages of opening a home based cupcake business. I would love some input on either opening as a sole proprietor or open as a corporation. Any suggestions would be appreciated!
If you are in the US, which state are you in? Some states allow home-based bakeries, and some don't.
If you can legally have a home-based business I would suggest starting out as an LLC, they are taxed the same as a sole prop by default.
I am in NY. What is a LLC?
I believe in most areas of NY a home-based bakery is restricted to wholesale only, no direct to consumer sales allowed, but you can verify that with your county's health dept.
Here is some more info on an LLC, it stands for Limited Liability Company and is a way to shield your personal assets from lawsuits and other business risk:
In NY, home-based food businesses are regulated by Ag & Mkts. Only non-hazardous foods allowed, There are no restrictions for wholesale but retail venues are limited to farmers' markets, green markets, crafts fairs, and a few others. http://www.agriculture.ny.gov/FS/consumer/processor.html