- That you can protect all assets. There are ways to create and operate a Corporation Sole to improve asset protection, but it is not complete protection. Once you move assets into your church/spiritual organization, they are no longer yours.
- That you pay no taxes. If correctly formed and operated, you can pay the least possible taxes, sometimes no taxes, on your spiritual service and ministry activities. But, any salary above expenses and proper Minister’s Stipend will be taxed, as will Unrelated Business Income.
- That a Corporation Sole establishes a church. It does not. The church, ministry, spiritual community or organization must be in existence first. The IRS recognizes the Corporation Sole as a proper form of organization of a church, however it is not the church. The leader of the spiritual organization creates the Corporation Sole.