Читать книгу Start & Run a Restaurant Business - Brian Cooper - Страница 8

There are a number of advantages to operating your business as a sole proprietor:

• Quick start. You can begin doing business immediately as a sole proprietor. Documentation is minimal; all you really need to obtain is a business license, and no complicated partnership agreements need to be written.

• Low cost. Apart from obtaining a business license, no legal measures need be taken to set up as a sole proprietor; therefore, no legal fees are involved.

• Possession of profits and assets. All earnings and assets of the business are regarded as the personal income and personal property of the sole proprietor, and may be disposed of as the proprietor wishes.

• Potential tax benefits. As mentioned above, the earnings of the business are regarded as the personal income of the proprietor, and must be declared as such on all tax forms. However, should a sole proprietorship incur a loss, that loss can be used to decrease the proprietor’s personal income tax.

• Quick wind down or sale. A business operated as a sole proprietorship can be closed or sold according to the proprietor’s wishes. (Note, however, that legal responsibilities to employees and creditors must nonetheless be fulfilled.)