Forming a Sole Proprietorship Business.docx - Forming a...

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Forming a Sole Proprietorship BusinessSole proprietorship is a type of business structure owned and managed by a singleindividual who is not legally separated from his business which means that he will enjoyall the profits but will have to shoulder all the financial responsibilities such as debts.Forming a Sole Proprietorshipthis is a step-by-step process in business start-ups and formation of sole proprietorship;however, keep in mind that requirements may vary in some Country.1. He/she Decide the name of the business which is not existing used by any businessestablishment or other entities.2. Register the business name with the local, Council, or Central government. Doing this isvery important to make a business legitimate.3. Obtain all the necessary business permits and licenses from the local, state, or centralgovernment. By doing this, a business will be subjected to safety standards, taxes, and othergovernment requirements.Control or Advantages of Sole ProprietorshipAccording to corporate lawyers, this type ofbusiness structure is lesscomplicated in terms ofstart-up requirements compared to partnership, LLC, and corporation. However, expertsbelieve that it is still ideal to consult with an experienced business lawyer to avoid legalloopholes.Because sole proprietorship is also considered as the simplest form of business organization,small-timeentrepreneurs prefer this structure since this is an inexpensive way to conduct abusiness enterprise.Also, thisbusiness structure allows people to avoid the formalities which are usually requiredin corporation and partnership where members are required to hold meetings in a regularbasis.Another control or advantage of sole proprietorship is that owners canenjoy full control overtheir business.Liabilities or Disadvantages of Sole ProprietorshipDespite some control, this business organization has its own risk. According to experts, oneof the biggest problems of sole owners is that they are

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Term
Fall
Professor
NoProfessor
Tags
Business Law, Corporation, Types of business entity, sole proprietorship business

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