Sole

Proprietorship
Where one person starts a business
and is sole owner of the business.

There is no legal distinction between

the owner and the business
 Formation
The simplest way of doing
business.

The costs to create a sole

proprietorship are very low

Very little formality is required.

 Liability:
Unlimited personal liability
for any liabilities the business
incurs.
 Taxation
The business itself does not file a tax
return. Instead, the income (or loss)
passes through and is reported
on the owner’s personal tax return.
 PROS:
It's easy to set up

Full control over it

 Drawbacks
Unlimited personal exposure to
risk, as the owner is responsible for
all liabilities incurred by the
business.

The life of your business is only as

long as your own.