Are you planning to start your own business but are new to the entrepreneurship world? One of the major considerations that entrepreneurs and businessmen make when they are planning to start a new business is its legal structure. Starting a new business is often a difficult process, but if you want to make a process a bit easier, you should choose sole proprietorship as your legal structure.
Sole proprietorship is the easiest to start because you need to obtain only whatever licenses are required in order to begin business operation – you are only required very little paperwork. It is easy for setup which most likely explains why it is the oldest type of business structure known to man and it is also the most common form of structure.
In addition to being easy to set up and form, another advantage of sole proprietorship is that this form of business allows you to take the steering wheel. It gives you absolute control over your business, more so than other business structures, such as partnerships and corporations.
You, as the owner, or the sole proprietor, you have the complete power over decision-making. You are the only one running the business, so all the decisions are made by you. It certainly spares you the headaches of getting the approval of a board of directors (in case of corporations) or the consent of other partners (in a partnership business).
When it comes to business, taxation is one of the most irritating subjects. Sole proprietorships have the advantage of being subject to simpler taxation procedures; since it is not a separate entity, it is not taxable. However, that does not mean that it is completely free from having to pay taxes.
There are many other benefits of sole proprietorship. However, there are also some disadvantages just like anything under the sun.
Red more about sole trading at: https://www.smallbusiness.wa.gov.au/business-advice/business-structure/sole-trader