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Created with Fabric.js 1.4.5 SOLE PROPIETORSHIP They take all the responsability and all the risk of running the business SOLE PROPIETORSHIP Owned and controlled by one person who alone keeps both the profits and bears thlosses of the business Creation Process A single individual engages in a business activity without necessarily of becoming a formal organization, and you don't have to register your business with the government, unless you want your consumers to know you other than by your name, in some jurisdictions you have to register the name itself in the municipal or state government. Advantages Disadvantages Easy to form Is the simplest business structure to form and the least expensive to undertake.Overall costs are minimal.Legal costs tend to be limited to obtainingnecessary licenses and permits Complete control Only one person has the complete control over all decisions, you dont't need to consult anyone. Very simple! Simple Taxation Since you are your own business and your own business is you, the profits aren't taxed separately, but at your own individual tax rate, so these tax rates are lower than other business structures. Personal Liability The risk is considerable, sin there is no legal separation between you and yourbusiness so you can be held personally liable for both debts and obligations of the business. This liability, which includes actions done by your employees, is unlimited Difficulty to raise money Unless you have a very large operating capitalto start your business it will be very difficult to raise money since banks are very cautioswhen lending money to sole propietors Both the success and financial rewards are product of your work only, and so are your financial failures andresponsabilities, since there is no one else to blame Everything relies on you
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