A sole proprietorship also known as a sole trader/sole owner is a type of business entity which is owned and run by one individual and where there is no legal distinction between the owner and the business. All profits and all losses accrue to the sole owner (proprietor / trader). All assets of the business are owned by the owner (proprietor / Sole trader)and all debts of the business are his/her debts and he/she must pay them from their personal resources. This means that the owner has unlimited liability. It is a “sole” proprietorship in the sense that the owner has no partners (partnership).
This is the most straightforward structure for a business. Basically it means the business decisions are being made by one person. Of course, it doesn’t necessarily mean that the business has only one worker. The sole trader can employ others to do any or all of the work in the business.
A sole proprietor may do business with a trade name other than his or her legal name. This also allows the proprietor to open a business account with banking institutions.
Masood & Masood specializing in business formation and better prompt tax planning to help secure you a prosperous business. we may be assist you in the following:
Pre feasibilty study
Business name and Brand Name registration
Legal aspects of succession planning
Tax implications as a sole trader
Website designing with e-commerce facilities.
Do let us know and we will be pleased to assist you.