Advantage

To secure any necessary state and local licenses and registrations, you must complete the required forms and file them with the appropriate state or local authority.1 Also, you only need to meet broadly defined health and zoning regulations and register the name of the business.2

2. Profits.

As you are the sole owner of the firm, you are free to take all the profits and use

them for whatever purpose you desire. Most frequently, profits are reinvested in the

business.

3. Freedom to manage as you choose.

Again because you are the sole owner of the business, you have total authority to take any action you see fit.3 You need not consult anyone as to what product will be produced, how many units will be produced, or who will do what and when. Decisions can be quick and/or entirely personal.4 Moreover, The ability to respond quickly is an asset in a rapidly shifting market, so the freedom to set the company’s course of action is a major motivational force. For people who thrive on seeking new opportunities, the freedom of fast, flexible decision making is vital.5

4.Few legal restrictions.

You have the freedom to operate (subject to the appropriate licensing and

regulations) anywhere in the country and to add or subtract products or services as you

desire. None of these activities would violate any legal document.6 In addition, the

proprietorship is the east regulated form of business ownership. In a time when

government requests for information seem never-ending, this feature has much merit.7

5. Easy to dissolve.

The ease of starting a business is only surpassed by the ease with which you can end it. You just stop doing whatever it is you were doing. You don’t even need to fill out any forms. The firm exists only as long as you want it to.8 Furthermore, you can terminate the business quickly, even though he will still be liable for all of the business’s outstanding debts and obligations.9

6. Taxes.

The profit of the proprietorship is taxed only once. The profit of the proprietorship is the income of the sole proprietorship, and as such only personal income taxes apply to it.10

7. Satisfaction.

Easily formed and free from the obligations of partner association, single proprietorship can result in considerable personal gratification to the accountant entrepreneur who is sufficiently motivated to make it work.11

8. Least costly form of ownership to establish.

The proprietorship is generally the least expensive form of ownership to establish.

There is no need to create and file the legal documents that are required for corporations. An entrepreneur simply goes to the city or country government, states the nature of the business he or she will start, and pats the appropriate fees and license costs. Paying these fees and license costs gives the entrepreneur the right to conduct business on that particular jurisdiction.12

9. Less expenses

You can deduct the majority of your business expenses from your income, thus reducing your tax bill. You can even claim a proportion of the heating and lighting costs as legitimate business expenses.

10. Others

You do not have to submit complex accounts to Companies House. You do not have to hold shareholder’s or director’s meetings and keep strict records of the proceedings.13

1 Small Business Management: a planning approach - Joel Corman and Robert N.Lussier

Times Mirror Higher Education Group, Inc. Company (1996) P.28-29

2 Economics (Sixth Edition) - Roger A. Arnold

South-Western, a division of Thomon Learning (2004) P.480-481

3 Small Business Management: a planning approach - Joel Corman and Robert N.Lussier

Times Mirror Higher Education Group, Inc. Company (1996) P.28-29

4 Economics (Sixth Edition) - Roger A. Arnold

South-Western, a division of Thomon Learning (2004) P.480-481

5 Effective Small Business Management : an entrepreneurial approach (Seventh Edition) - Norman M. Scarborough, Thomas W. Zimmerer

Upper Saddle River, N.J. : Prentice Hall (2003) P.67-72

6 Small Business Management: a planning approach - Joel Corman and Robert N.Lussier

Times Mirror Higher Education Group, Inc. Company (1996) P.28-29

7 Effective Small Business Management : an entrepreneurial approach (Seventh Edition) - Norman M. Scarborough, Thomas W. Zimmerer

Upper Saddle River, N.J. : Prentice Hall (2003) P.67-72

8 Small Business Management: a planning approach - Joel Corman and Robert N.Lussier

Times Mirror Higher Education Group, Inc. Company (1996) P.28-29

9 Effective Small Business Management : an entrepreneurial approach (Seventh Edition) - Norman M. Scarborough, Thomas W. Zimmerer

Upper Saddle River, N.J. : Prentice Hall (2003) P.67-72

10 Economics (Sixth Edition) - Roger A. Arnold

Australia : Thomson/South-Western (2004) P.480-481

11 Starting and Building Your Own Accounting Business (Third Edition) - Jack Fox

John Wiley & Sons, Inc. (1999) P.33

12 Effective Small Business Management : an entrepreneurial approach (Seventh Edition) - Norman M. Scarborough, Thomas W. Zimmerer

Upper Saddle River, N.J. : Prentice Hall (2003) P.67-72

13 How to start a business from home : a practical step-by-step guide for beginners (Third Edition) - Graham Jones

Plymouth, [England] : How to Books (1994) P.81

P.13