Читать книгу Start & Run a Coffee Bar - Tom Matzen - Страница 55

(a) Ease of formation. There is less formality and few legal restrictions associated with establishing a sole proprietorship. You can start almost immediately. There are no complex forms to complete and no documentation is required between you and any other party. In most jurisdictions, all that is legally necessary to operate as a sole proprietorship is to register the business and obtain the proper licenses. Licenses can be required by various levels of government.

(b) Cost. Registering the business and obtaining licenses involves minimal costs. There are no partnership or corporate agreements required by you because you are the sole owner. Legal fees are reduced accordingly.

(c) Lack of complexity. A sole proprietorship is straightforward. Unlike other forms of business, there is little government control and, accordingly, fewer reports are required to be filed with government agencies and departments. The owner and the business are taxed as one. Business losses can be offset against other income.

(d) Decision-making process. Decisions are made exclusively by the sole owner, who has complete authority and freedom to move. The owner does not have to obtain approval from partners or shareholders or a board of directors.

(e) Sole ownership of profits. The proprietor does not have to share the profits with anyone. The profits generated by the business belong to one person. The sole owner decides how and when the money will come out of the business.

(f) Ease of terminating/sale of business. Apart from legal responsibilities to employees, creditors, and perhaps clients, you can sell the business or close it down at your will. It is also relatively easy to roll a sole proprietorship into a corporation later, if you wish to.

(g) Flexibility. You are able to respond quickly to business needs with day-to-day management decisions governed only by various laws and common sense.