Sole Proprietorship Basics

[harjos]

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A sole proprietorship is a business that is owned by one person and sometimes his or her spouse and that isn’t registered with the state as a corporation or a limited liability company (LLC).

Sole proprietorship are so easy to set up and maintain that you may already own one without knowing it. For instance, if you are a freelance photographer or writer, a crafts person who takes jobs on a contract basis, a salesperson who receives only commissions or an independent contractor who isn’t on an employer’s regular payroll, you are automatically a sole proprietor.

However, even though a sole proprietorship is the simplest of business structures, you shouldn’t fall asleep at the wheel. You may have to comply with local registration, license or permit laws to make your business legitimate. And you should look sharp when it comes to tending your business, because you are personally responsible for paying both income taxes and business debts.

[cirext]

tnx bro for posting this helpful thread....
im also into a business..sole proprietorship
on the field of real estate and construction

[makie]

For a start,

Sole Proprietorship: Advantages

• Easiest and least expensive form of ownership to organize.

• Sole proprietors are in complete control, and within the parameters of the law, may make decisions as they see fit.

• Sole proprietors receive all income generated by the business to keep or reinvest.

• Profits from the business flow-through directly to the owner's personal tax return.

• The business is easy to dissolve, if desired.

Sole Proprietorship: Disadvantages

• Sole proprietors have unlimited liability and are legally responsible for all debt
  against the business. Their business and personal assets are at risk.

• May be at a disadvantage in raising funds and are often limited to using funds from personal savings or consumer loans.

• May have a hard time attracting high-caliber employees, or those that are motivated by the opportunity to own a part of the business.

• Some employee benefits such as owner's medical insurance premiums are not directly deductible from business income (only partially deductible as an adjustment to income).

Source: Sole Proprietorship, Advantages, Disadvantages

[cirext]

Can you make a very big company that runs by itself, owning a very large asset (somewhat like SM Holdings) and yet its still under a SOLE PROPRIETORSHIP?

[butilus6]

Can you make a very big company that runs by itself, owning a very large asset (somewhat like SM Holdings) and yet its still under a SOLE PROPRIETORSHIP?

i know of someone whos running a very big insurance company in PNG + other businesses, and its on sole proprietorship.