1.11 : Sole Proprietorship

A sole proprietorship structure offers the owner exclusive authority over all business decisions, from daily operations to strategic planning. This form of business is characterized by its simplicity and ease of setup, often requiring minimal registration, such as acquiring a business license.

Key features of a sole proprietorship include unlimited personal liability, meaning the owner is personally responsible for all business debts and legal issues. Consequently, personal assets, such as savings or property, may be utilized to settle business debts if necessary. Despite this risk, the sole proprietorship remains a popular choice due to its straightforward nature.

Globally, small-scale entrepreneurs are inspired by the control and independence offered by sole proprietorships. This structure allows you to retain all profits and make decisions independently, without the need to consult partners or shareholders. Additionally, business income is typically reported on your personal tax return, simplifying the tax process and motivating you to take the leap into entrepreneurship.