Manish Marwah and Co helps in providing necessary guidance to businesses in registering for Sole Proprietorship firms. As Sole proprietorship has only one firm leader, it becomes important to get proper guidance to structure your firm and acquire the proper knowledge about the business and process that goes behind.
A sole proprietorship is a business structure where a single individual is solely responsible for all aspects of the business. This structure offers several advantages including low overhead costs, flexibility, and ease of setup. However, it comes with several risks. A sole proprietor is liable for all debts and potential liabilities of the business. Therefore, it becomes important to look out on the pros and cons before registering for sole proprietorship business.
The main advantage of a sole proprietorship is that the owner can make all the decisions without requiring approval from any other parties. The sole proprietor is also generally able to keep all the profits of the business without having to share it with any other parties. Additionally, setting up a sole proprietorship is usually straightforward and inexpensive, as it does not require any additional registration fees or legal documents.
On the other hand, there are several risks associated with a sole proprietorship. The main drawback is that the sole proprietor is personally liable for all the business debts and liabilities. This means that the proprietor’s personal assets including personal savings, car, and home can all be used to repay business debts in case of insolvency or bankruptcy. Additionally, it is harder to raise capital due to the lack of a separate legal entity, which makes it difficult to get bank loans or attract investors.
In conclusion, setting up a sole proprietorship can be a great option for entrepreneurs looking to start their own business. However, it is important to understand the risks and be prepared to take on personal liability for all the debts of the business and Manish Marwah and Co will be with you throughout.
