How to Start a Sole Proprietorship
What is a Sole Proprietorship?
A sole proprietorship is a business structure in which a single individual owns and operates without the involvement of other individuals or partners. A sole proprietorship is the simplest form of business and is quite common among solo entrepreneurs and small businesses. The owner has complete control and decision-making authority over the business. A sole proprietorship has no legal distinction between the owner and the business entity.
Advantages
Minimal legal formalities and compliance requirements
No annual financial statements or public disclosure
Complete control as a sole owner
Disadvantages
No separate recognition
Personal liability, limited funds
Limited capital and cash flow
