A sole proprietorship is a fundamental and widely utilized type of business structure in which one person owns and runs the company. The business is not viewed as a distinct legal entity, and the proprietor bears unlimited personal culpability for commercial obligations. Because of its simplicity and low entry challenges, this structure is popular among small enterprises and single entrepreneurs. It is also quick to set up and requires minimum regulatory compliance. It is a simple but constrained alternative for small-scale enterprises, as the proprietor keeps all earnings and controls all decisions.
Who is a Proprietor?
The company's sole proprietor is responsible for all decision-making, day-to-day management, and taking on all business-related risks and responsibilities. In a one-person business, "owner" and "proprietor" are frequently used synonymously. The owner has complete control over the company and its operations, but because of the unrestricted personal liability feature of this business structure, their assets might be in danger if the company accrues debts or faces legal requirements.
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