STARTING A BUSINESS AS A SOLE PROPRIETOR?
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When starting your journey towards becoming a full-time entrepreneur, most of the time we lack the knowledge on which direction to go when it comes to properly structuring our businesses. We are consistently bombarded with everyone's professional input on what's best for us when starting out, but truthfully the best person to ask about which structure would be best for you would be a small business attorney.
Most of the professionals and small business attorneys that we've encountered have told us that they always recommend to their new start-up clients to start small as a sole proprietor because it has the least financial drawbacks. They explained how it's easier to scale up and scale the business as opposed to starting off too large and being way in over your head.
A sole proprietorship, also known as a sole tradership, individual entrepreneurship or proprietorship, is a type of enterprise owned and run by one person and in which there is no legal distinction between the owner and the business entity. A sole trader does not necessarily work alone and may employ other people.
- Single ownership: A sole proprietorship is wholly owned by one individual.
- One-man control
- No legal entity
- Unlimited liability
- No profit-sharing
- Small size
- No legal formalities
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