Why do we Require Sole Proprietorship Registration for Our Business?
Swarit Advisors | Updated: May 22, 2018 | Category: Sole Proprietorship
An Entrepreneur is always willing to set up his own business to procure more advantages. But with regards to legal archives and registrations, the work included can be extremely overpowering. Peoples generally get befuddled between the kind of organization they need to consolidate and after that, how to continue with its registration process. It sometimes requires a great deal of diligent work. In the midst of this, comes up the idea of Sole Proprietorship Registration for our business.
Sole Proprietorship is the smallest type of business which is not viewed as a separate lawful entity. It can be considered as one of its advantages or inconveniences relying upon individual observation. All the income and loss of the organization are saddled on proprietor’s Income Tax Return, sounds terrifying? Well once more, it all about the perceptions! Portrayed underneath is in detail of what precisely sole proprietorship is.
What Are The Main Features Of Sole Proprietorship Registration?
One of the main features of Sole Proprietorship Registration is that it doesn’t have separate legal entity& it completely belongs to the owner, i.e. all the debts belongs to him. Due to which the personal assets of the owner are at risk. Sole Proprietorship Registration is quite easy and all you require is few local licenses & identity cards such as PAN Card, bank account, Aadhaar Card, etc. There is a choice of mixing different businesses, no separate name will be required for the business. As everything is earned by the Sole Proprietorship, therefore, tax procedure is also very simple.
Have A Look On The Advantages Of Sole Proprietorship Registration
A sole proprietorship encourages those who want to start their own business, i.e. growth of self-employment. Peoples who are with you in relations, family or friends when interacting with you & appreciate your work and benefit that you are getting through it, encourage them as well. There are a few advantages that are as follows:-
- Easy Tax Filings- As discussed owner & business are the same therefore capital earned by the sole proprietorship is under the name of the owner, hence, tax filings are done easily.
- Whole Control over the Business- Without the legal intervention of anybody, you can run your business under your control, according to you.
- Inexpensive Setup-There are no as such formalities are required for Sole Proprietorship Registration, only a few local licenses and identity verification documents are required.
As we know that it is always required to get an expert advisor, but in case if your business doesn’t require more involvement then you are better with being sole proprietorship of your business.
Points To Consider
Starting a new business being the sole proprietorship is most common and one of the easiest way to begin. There are some misconceptions & rumors regarding employing the peoples but it is common in a small business organization as well. Your concerns will be regarding how to raise the capital, some important decision to be made for growth and other liabilities, taxes, accounting, etc.
Also, Read: What are the Reasons to Apply for Sole Proprietorship Registration?.
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