Sole Proprietorship Let’s Start With

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The Most Basic Option. When You Start Generating Any Kind Of Income On The Basis Of Self-Employed Activity You Are Automatically Considered In The Eyes Of The Government To Be A Sole Proprietor. A Sole Proprietorship Is A Business That’s Owned And Operated By A Single Person. As The Entrepreneur You Get To Make All The Decisions And You Get To Claim All The Profits.

Of Course You Are Also On The Hook For Any Debts Or Liabilities. Something honduras phone number material That’s Crucial To Understand Is That A Sole Proprietorship Business Formation Does Not Have Any Legal Existence Apart From The Owner. This Means In Essence That The Owner Has Unlimited Legal Liability Any Suit That’s Brought Against The Business Is Really Being Brought Against The Owner. Learn More About The Unique Challenges And Advantages Of Sole Proprietors Including The Use Of Communication Tools Like Texting And How It Compares To Llcs.




Sole Proprietorship Pros And Cons Ease Of Setup Very Light Regulatory Burden Total Control Pass-Through Taxation No Double Taxation Sole Decision Making Ability Without Consulting A Partner Or Board Of Directors Unlimited Liability Significant Risk Exposure Especially In Litigious Environments Limited Capital High Responsibility Challenges Bringing On New Employees Difficulty Selling Or Passing Along A Business Partnership Another Legal Formation To Consider When Starting A Business Is The Partnership.