What is a sole proprietorship and how does it work?

What is a sole proprietorship and how does it work?

A sole proprietorship is a business owned and operated by a single individual. It's the simplest form of business structure.

What are the advantages of choosing a sole proprietorship?

Some advantages include complete control over the business, ease of setup, and tax benefits since profits are taxed as personal income.

Are there any disadvantages I should be aware of?

Yes, disadvantages include unlimited personal liability, difficulty in raising capital, and the business ceasing to exist if the owner passes away.

How do I register a sole proprietorship?

You typically need to choose a business name, register it with local authorities, and obtain any necessary licenses or permits.

Can I convert my sole proprietorship to another business structure later?

Yes, you can convert your sole proprietorship to a partnership, LLC, or corporation as your business grows.