Starting Business as Proprietor. Know Pros and cons of doing business as Proprietorship.

Pros and cons

Benefit of starting business as Sole Proprietorship

• Smooth Start with fewer compliances.

• Quick decision and implementation of business strategy.

• 100% ownership in profit i.e., undivided profits.

• Slab Rate benefit under Income Tax and don’t need to file a separate return.

• Less third party or government interference.

Disadvantage of starting business as Sole Proprietorship.

• Unlimited liability to pay off debt or obligation of the business. Even personal assets could be sold out.

• Lack of Management as decision making power rests with one individual.

• No separate law to govern or protect.

• The death, physical impairment, or mental incapacitation of the owner can result in the termination of the business.

• Difficult to raise funds from investors and also banks don’t provide financial aid.

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