A sole proprietorship also referred to as a sole tradership, individual entrepreneurship, or proprietorship, may be a sort of enterprise owned and travel by one person and during which there's no legal distinction between the owner and therefore the business entity
Advantages and drawbacks
Sole proprietorships have several advantages over other business entities. they're easy to make, and therefore the owners enjoy sole control of the business profits. However, they even have disadvantages, the most important of which being that the owner is personally responsible for all business losses and liabilities.
Responsibilities
An individual proprietor owns and manages the business and is liable for all business transactions. The owner is additionally personally liable for all debts and liabilities incurred by the business. A sole proprietor can own the business for any duration of your time and sell it when he or she sees fit.
Tax benefits
One of the most tax advantages of running a sole proprietorship is that you simply can deduct the value of insurance for yourself, your spouse, and any dependents. Better still, you'll take this deduction albeit you do not itemize deductions on your income tax return
