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ADVANTAGES OF SOLE PROPREITORSHIP?

Posted By admin on December 25, 2013 No Comments

Easy to Form and Wind up

  • A sole proprietorship form of business is very easy to form.
  • Need to invest only small amount of capital
  • There is no need to comply with any legal formalities except for those businesses which required licence from local authorities or health department of government.
  • It is very easy to wind up the business.
  • It is your sole discretion to form or wind up the business at any time.

Direct Motivation

  • The profits earned belong to the sole proprietor
  • He bears the risk of losses .
  • There is a direct link between effort and reward which work as an incentive to work hard.

Quick Decision and Prompt Action:

  • In a sole proprietorship business the sole proprietor alone is responsible for all decisions.
  • Properitor is free to take any decision on his own.
  • No one else is involved in decision making so quick and prompt action can be taken on the basis of this decision.

Quicker Tax Preparation

  • As a sole proprietor, filing your taxes is generally easier than a corporation.
  • File an individual income tax return (IRS Form 1040) including your business losses and profits.
  • Individual and business income are considered the same and self-employed tax implications will apply

Ease of Money Handling

  • Handling money for the business is easier than other legal business structures.
  • No payroll set-up is required to proprietor can set up separate bank account to keep
  • business funds separate and avoid co-mingling personal and business activities

Better Control

  • In sole proprietorship business the proprietor has full control .
  • He is the planner as well as the organiser, who co-ordinates every activity in an efficient manner.

Maintenance of Business Secrets

  • Business secrecy is an important factor forevery business.
  • The proprietor is in a very good position to keep his plans to himself since management and control are in his hands.
  • There is no need to disclose any information to others.

In case you need any further information Contact us at 9818092002 Email : info@companyindia.co.in Close Personal Relation

  • The sole proprietor is always in a position to maintain good personal contact with the customers and employees.
  • Direct contact enables the sole proprietor to know the individual likes, dislikes and tastes of the ncustomers.
  • It helps in maintaining close and friendly relations with the employees and thus, business runs smoothly.

Flexibility in Operation:

  • The sole proprietor is free to change the nature and scope of business operations as and when required as per his decision.
  • A sole proprietor can expand or curtail his business according to the requirement.

Lower Start-up Costs

  • Limited capital is a reality for many startups and small businesses. The costs of setting up and operating a corporation involves higher set-up fees and special forms. It’s also not uncommon for a lawyer to be involved in forming a corporation

Encourages Self-employment

  • Sole proprietorship form of business organization leads to creation of employment opportunities for people.
  • Not only is the owner self-employed, sometimes he also creates job opportunities for others.

In case you need any further information Contact us at 9818092002 Email : info@companyindia.co.in In case you need any further information Form your Sole proprietorship in Just 3 days time Contact us at 9818092002 Email : info@companyindia.co.in For more query or information or document requirement

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