The sole proprietorship is a business that legally has no separate existence from its owner. Income and losses are taxed from the individual’s personal income tax return. – ENTREPRENEUR
The sole proprietorship is regarded as the simplest form of business because of its easy procedure of registration hence granting entrepreneur the opportunity to register a business without much requirement.
Most businesses around the world strive in this form of business, thus making it the most widely used form of business.
Now the question is, why do most entrepreneurs choose sole proprietorship to other forms of business?
While a lot of answers have been attributed to this question, we will be taking a look at more practical answers to the question.
TOTAL CONTROL OVER COMPANY:
Most entrepreneurs that I have personally come in contact with are eccentric thinkers; this attribute makes it hard for them to easily accept other people’s point of view without countering it.
While going solo gives you total control over your company with respect to decision making, it is also advisable to listen to whoever you are working with, putting their views into consideration.
MINIMAL LEGAL COST DURING SET UP:
Unlike other forms of companies, the sole proprietorship is the cheapest. Most entrepreneurs started out as solopreneurs as their default option.
DECISION MAKING AT YOUR OWN PACE:
The ability to make a quick decision is one common trait in every entrepreneur. It is very hard to see giant corporations make a quick decision; this is because of the series of protocols that have been put in place in the name of company modus operandi. Since most entrepreneurs are result oriented and like taking action without being delayed, the sole proprietorship is an ideal place to pitch their tent.
While having partners could help get more works done, it worthy to note that among the twelve, there was a Judas. Most entrepreneurs have had an encounter with this Judas, hence the change of perspective towards partnership.
CHANGING OF BUSINESS STRUCTURE:
As a sole proprietor, solopreneurs have the ability to change the structure of the company when it no longer works to your advantage, without following through the hindering processes set out in a corporation.
You get to keep all you made. The only homage you pay is the income tax that you pay to your government. You can choose to re-invest your money for expansion purposes.