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A sole proprietorship is a business type in which one person carries full responsibility for the business. There is no distinction between the personal and business assets. In a sole proprietorship, the entrepreneur decides everything independently. Many obligations are cancelled out in this company format. For instance, you don’t need a minimum sum or a financial plan to start.
If you want to start a business and want full control over all decisions, a sole proprietorship is a good choice. It’s especially suited for entrepreneurs who want a simple company structure – without the complexity of a partnership.
The costs to launch a sole proprietorship are relatively low, given that you don’t need start-up capital. However, there are certain costs connected to registering your business at the Crossroads Bank for Enterprises and possible administrative formalities. The income generated by the sole proprietorship is taxed as part of the personal income tax. The tax rate is progressive and can increase as the income does.
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