Education and Career Forum

advantages and disadvantages of sole proprietor..please giv eme the details for the same

There is advantage as well as disadvantages of sole proprietor.

>>Advantages of a sole proprietor :-

1] A sole proprietor has complete control and decision-making power over the business.

2] Sale or transfer can take place at the discretion of the sole proprietor.

3] No corporate tax payments.

4] Minimal legal costs to forming a sole proprietorship.

5] Few formal business requirements.

Disadvantages of sole proprietor :-

1] Unlimited liability for debts as there’s no legal distinction between private and business assets

2] Your capacity to raise capital is limited

3] All the responsibility for making day-to-day business decisions is yours

4] Retaining high-caliber employees can be difficult

5] It can be hard to take holidays

6] You’re taxed as a single person

7] The life of the business is limited.


I hope this information will help you a lot.

All the best......................