what are merits of sole propritership?

Answer 1

The main advantages that differentiate the sole proprietorship from the other legal forms are

(1) the ease with which it can be started,
(2) the owner's freedom to make decisions - owner is the boss (no boards to consider)
(3) the distribution of profits (owner takes all)
(4) Income from business is taxed as personal income.
(5) You can discontinue your business at will.

Answer 2

The type of business form you choose will depend on three primary factors:
1. liability
2. taxation
3. record-keeping

Sole Proprietorship are the most common form of business organization. It’s easy to form, and offers complete managerial control to the owner.
• Simplest business form from a tax standpoint.
• Requires the maintenance of records by the individual so that it is possible to determine the income and expenses related to that activity.
• Business income (profit) is reported on a separate IRS tax form, Schedule C. This form is an attachment to the individual’s annual IRS tax form.
• The IRS code allows taxpayer deductions from the gross income (sales), “the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business...”.
• Sole Proprietorship tax rates are sometimes higher than corporate tax rates so there is a need to focus on individual circumstances.

Answer 3

Well, here are a few outstanding advantages:
1- You will look like a numbskull cause you couldn't figure out how to fill out articles of incorporation.
2- Your customers will think of you as a Ma and Pa organization and will therefore ruthlessly devalue your product.
3- You'll have to call a tax specialist about whether to pay tax on the value of the assets of your business or write off personal items as a business expense... and a a lawyer to tell you if the tax specialist's advice can land you in jail.
4- Everyone's favorite - if you get sued, they can take your business, and if your business gets sued, they can take your children. :o)

Answer 4

A sole proprietorship has the advantages of :

1. Making faster decisions ( as he doesn't have to contact his partners)

2. He can be more customer friendly as he gets used to his clients and can make changes for each of them

3. He gets all the profits

Sorry cant think of any more, all i know are disadvantages, but i bet you know them !

Answer 5

- No one to tell you what to do, unless you are a business that must be registered or licensed.
- No separate tax forms or filings to worry about.
- No employee issues if you do not have employees.
- Can move operations almost anywhere at will.

Answer 6

Easiest business entity to form, easy to calculate and file taxes.

Answer 7

Decision making will be clear and as long as planning had been done correctlly will be easier to set goals and to achieve them.
VR

Answer 8

All yours. You can sail your flag ship at a rapid speed or at a snail pace. You can shift your priorities without convincing others.