Sole Proprietorship

In general terms, this type of business tends to have no individual existence from its owner. Sole Proprietorship has been considered as the simplest business model one can choose to operate under. As it is not a legal entity, it typically refers to an individual who owns and operates the business and can be held responsible for all the associated debts and liabilities. A sole proprietorship can function under the name of its owner or it can do business under a fictional name.

Sole Proprietorship is a widely adopted business model due to its ease of setup, simplicity and nominal cost. A sole proprietor need to only register his or her name and obtain local licenses, and the sole proprietor would be all set for the business.The biggest disadvantage of this business model is that the business owner would be personally liable for all the business’s debts. Therefore, if a sole proprietor business gets into financial distress, creditors can take legal action against the business owner. If charges get proven, the owner will have to pay the business debts from his personal account.

The key feature of sole proprietorship is that contrary to a partnership or an incorporate business, there is no legal separation between the business and the owner in a sole proprietorship. This kind of business is generally perceived as an extension of the owner who remains liable for any debts or liabilities suffered by the business.

Advantages of Sole Proprietorship

• Easy to setup
• Owner owns 100% of business
• Much easy to operate from a tax and accounting perspective
• Cost of doing business is fully deductible from income tax
• Business losses can be deducted against other forms of income or carried forward or backward

If you’re looking to setup a Sole Proprietorship, Trademark Bazaar could help you out in this endeavor of yours. Our highly trained and experienced company incorporation professionals are committed to provide full-fledged support in regard to Sole Proprietorship incorporation and management. From taking necessary approvals to completing legal formalities, we aspire to add a lot of easiness and worthiness to your business plan.

Over the years, we have helped hundreds of individuals in realizing their dream to get their own business. Our motto is to make it easy for our clients to setup and manage their business in each & every aspect.