These are some of the advantages of sole proprietorship

One of the easiest ways to make money is by running a small business. As a sole trader, the amount of money you pay to the tax authorities for registration is minimal and account management is easy, thanks to the many account management programs available on the Internet. However, you must be prepared to keep all the profits and absorb the losses. If you don’t pay your business debts on time, you risk being sued for bankruptcy by your creditors.

Most businesses run in a sole proprietorship business structure are profitable, easily managed, and have few registration forms and books to worry about. You don’t need as much time to prepare and set up big budgets as other structures do. The amount of money and documentation you need is also limited. It may also be good to keep in mind that just as it is easy to form a sole proprietorship, it is also easy to liquidate it if you wish.

A sole proprietorship encourages the growth of self-employment businesses for those who want to start new businesses. Your friends and family will interact with you personally and appreciate the benefits you get from your new business, making them want to start like you did. As a small business owner, you can manage your employees as you are the one in control of daily activities and important business decisions will always come from you.

The owner knows each of his customers by name and location. Therefore, he can develop a close friendship with them. By virtue of the fact that a small business enterprise is easy to form, manage, control and maintain, the business owner is encouraged to go on and explore new heights in business, the more he works and devotes time and effort to the business. , the more money you earn. The sole proprietor will keep all the profits, minus the increased taxes on the business entity.