Company Formation

SOLE PROPRIETORSHIP


SOLE PROPRIETORSHIP
The most common and simplest form of business is a sole proprietorship. Many small businesses operating in the India are sole proprietorships. An individual proprietor owns and manages the business and is responsible for all business transactions. The owner is also personally responsible for all debts and liabilities incurred by the business.But sole proprietorship business is not a legal entity; directly refer to its owner. Sole proprietorship business can operate under the name of its owner or any fictitious name. Start a sole proprietorship business need register the business owner name with local authority, its ready for business activities. A disadvantage, however, is that the owner of a sole proprietorship remains personally liable for all the business's debts.

Advantage of Sole Proprietorship Business:
 A sole proprietor has complete control and decision-making power over the business.
 No corporate tax Liability
 Minimal legal cost to forming a sole proprietorship
 Few formal business requirements.


Disadvantages of Sole Proprietorship Business:
 The sole proprietor of the business can be held personally liable for the debts and obligations of the business.
 All responsibilities and business decisions fall on the shoulders of the sole proprietor.
 Investors won't usually invest in sole proprietorship business.

The most common and simplest form of business is a sole proprietorship. Many small businesses operating in the India are sole proprietorships. An individual proprietor owns and manages the business and is responsible for all business transactions. The owner is also personally responsible for all debts and liabilities incurred by the business.